Home › CA Final › financialreporting › Ind AS 36 — Impairment of Revalued Assets, CGU Edge Cases, Disclosures, Post-Impairment Depreciation › Identify the statement about CGU disclosure unde…
Identify the statement about CGU disclosure under Ind AS 36 that is INCORRECT.
ASensitivity-of-assumption disclosures apply whether RA is VIU or FVLCTS
BGoodwill impairment reversals must be disclosed with sensitivity analyses
CDisclosures for VIU-based RA cover key assumptions, management's approach, projection period, growth-rate beyond projection period, discount rate
DDisclosures for FVLCTS-based RA include fair value hierarchy level, valuation technique, key assumptions when categorised in Levels 2 and 3
Answer & Solution
Correct answer: B. Goodwill impairment reversals must be disclosed with sensitivity analyses
Goodwill impairment reversal is PROHIBITED — so there are no 'reversal' disclosures of goodwill. The other three statements correctly describe Ind AS 36 disclosure requirements (paragraphs 130, 134, 135).
Related questions
When an impairment loss recognised in a prior period for a CGU is REVERSED:When an impairment loss is allocated within a CGU, the order of allocation under Ind AS 36Multiple CGUs share the SAME key assumption (e.g. growth in a common end market) and the AAn entity's CGU recoverable amount is based on VIU. The discount rate disclosure required An entity uses a SENSITIVITY disclosure when a reasonably possible change in a key assumptWhen projecting cash flows beyond the period covered by management's most recent budgets/fWhen an entity discloses a CGU to which significant goodwill is allocated and recoverable An entity tests goodwill annually. The most recent detailed RA calculation for a CGU excee