This assignment delves into the accounting treatment of goodwill impairment according to International Financial Reporting Standards (IFRS) 3. It focuses on the recognition criteria for impairment losses, particularly within the context of Cash-Generating Units (CGUs). The discussion encompasses the annual testing process for CGU recoverable amounts and compares different methods used for allocating impairment losses. The assignment also highlights the impact of various factors on goodwill impairment calculations and provides insights into the implications for financial reporting.