Home › CA Final › financialreporting › Ind AS 36 — Impairment Loss Recognition, CGU Identification, Goodwill Allocation to CGUs, Disposal within CGU › An asset's carrying amount is ₹1,000; impairment…
An asset's carrying amount is ₹1,000; impairment loss ₹350; tax base ₹800; tax rate 30%; impairment NOT deductible for tax. Post-impairment deferred tax position is:
ADTL ₹60 (unchanged from pre-impairment)
BDTA ₹105
CNil
DDTA ₹45 (= (800-650) × 30%; impairment creates a DTA where tax base now exceeds CA)
Answer & Solution
Correct answer: D. DTA ₹45 (= (800-650) × 30%; impairment creates a DTA where tax base now exceeds CA)
Pre-impairment: CA 1,000, TB 800 → DTL 60 (taxable temporary diff 200 × 30%). Post-impairment: CA 650, TB 800 → DTA 45 (deductible temporary diff 150 × 30%). DTA recognised only if probable taxable profits will absorb it (Ind AS 12).
Related questions
An impairment loss on a CGU is allocated to its assets — but the carrying amount of any inAn entity's CGU testing for the prior period included corporate-asset CA but the current pAn entity sells the output of an asset partially internally and partially externally. An aA bus company runs 5 routes under a municipal contract that requires minimum service on eaIf the initial allocation of goodwill acquired in a business combination cannot be COMPLETAn entity reorganises its reporting structure: CGU A's goodwill is being redistributed acrAn entity disposes of an OPERATION within a CGU to which goodwill was allocated. The goodwEntity A acquires Entity B for ₹50 mn. FV of identifiable net assets ₹35 mn; allocated ₹25