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An entity's CGU testing for the prior period included corporate-asset CA but the current period excludes it. Identify the correct statement.
AComposition changes require regulator approval
BCGU composition can change freely from period to period
CComposition changes only matter for goodwill
DCGUs shall be identified consistently from period to period for the same asset/types of assets, UNLESS a change is justified — and disclosures are required when a change occurs that affects impairment recognition or reversal
Answer & Solution
Correct answer: D. CGUs shall be identified consistently from period to period for the same asset/types of assets, UNLESS a change is justified — and disclosures are required when a change occurs that affects impairment recognition or reversal
Ind AS 36 paragraph 72: CGU identification must be consistent across periods unless a justified change occurs. Composition changes (and consequential impairment effects) must be disclosed for transparency.
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