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An entity tests CGU X (which has allocated goodwill) AND individual assets within X for impairment in the SAME period. Required testing order:
ATest only the CGU as a whole
BTest in any order — outcome is the same
CIndividual assets first; THEN test the CGU containing goodwill — recognise individual-asset impairment before CGU/goodwill test (so the carrying amount of the CGU at the CGU test reflects the post-individual-impairment values)
DGoodwill first, then individual assets
Answer & Solution
Correct answer: C. Individual assets first; THEN test the CGU containing goodwill — recognise individual-asset impairment before CGU/goodwill test (so the carrying amount of the CGU at the CGU test reflects the post-individual-impairment values)
Ind AS 36 paragraph 97: individual assets within a CGU containing goodwill are tested for impairment BEFORE the CGU itself. This ensures goodwill impairment isn't masked by including artificially high carrying amounts in the CGU test.
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