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An entity acquired goodwill in a BC DURING the current annual period and the goodwill was allocated to CGU Y. Required impairment testing timing:
ATest on the first day of the next year
BTest only when an indicator arises
CWait until the next annual review cycle
DTest CGU Y for impairment BEFORE the end of the current annual period (regardless of the regular annual test date)
Answer & Solution
Correct answer: D. Test CGU Y for impairment BEFORE the end of the current annual period (regardless of the regular annual test date)
Ind AS 36 paragraph 96: if goodwill was acquired during the current annual period, the receiving CGU must be tested before the end of that period. This prevents un-tested goodwill being carried for up to a full year.
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