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When an entity discloses a CGU to which significant goodwill is allocated and recoverable amount is based on VIU, key disclosures include all of the following EXCEPT:
APeriod over which cash flows are projected; if >5 years, explanation why a longer period is justified
BEach key assumption underlying cash flow projections
CManagement's approach to assigning values to key assumptions and consistency with past experience / external sources
DThe entity's market capitalisation at year-end
Answer & Solution
Correct answer: D. The entity's market capitalisation at year-end
Market cap is an impairment indicator (paragraph 12) but not part of the CGU-level VIU disclosure schedule (paragraph 134). Disclosures focus on the inputs to VIU: key assumptions, management's approach, period of projections, growth rate beyond projection period, discount rate.
Related questions
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