Questions & Answers
Testing goodwill for impairment
Question Our company acquired a subsidiary and goodwill on acquisition arose. According to IFRS, we have to test the goodwill for any impairment at least annually. How can we do it? The goodwill does not have any fair value and it’s not possible to determine…
Can we avoid an impairment loss by the change in asset’s use?
Question Our company produces a few categories of products. Due to increasing competition in our country, one of our divisions started to make loss and we performed the impairment review of the assets within that division. We estimated future cash flows and found out that…
Impairment and subsequent depreciation
Question We recognized impairment loss on one of our buildings because its fair value was by CU 40 000 lower than its carrying amount. We depreciated that building on a straight-line basis over 40 years. How should we continue depreciating the building after recognition of…