Sensitivity & Headroom: Break-Even Discount Rate and Growth
This lesson is part of the course
In this lesson
You recalculate the Retail Packaging headroom for discount rates from 9 % to 14 %, chart it, and solve for the long-term growth rate at which the headroom disappears.
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Lessons in this course
- Impairment Indicators: When Must You Test? (IAS 36.9–14) Locked
- Recoverable Amount: the Higher of FVLCD and Value in Use Locked
- Value in Use: Five-Year Cash Flows, Terminal Value & a Pre-Tax Rate Locked
- CGUs & Goodwill: Allocation and the Carrying Amount to Test Locked
- Allocating an Impairment Loss: Goodwill First, Then Pro Rata with a Floor Locked
- Corporate Assets: Allocating the Head Office to the CGUs Locked
- Sensitivity & Headroom: Break-Even Discount Rate and Growth Locked
- Reversing an Impairment (Never for Goodwill) & the Journal Entries Locked