This article explains the nature and rules of reversal of impairment loss for goodwill. It covers the process, indicators, and disclosure requirements. It also provides insights into journal entries for impairment loss. The article is relevant for accounting and finance students and professionals.

Impairment of Assets

This assignment has 2 parts: a 1000-word theory interpretation essay on the reversal of an impairment loss for Goodwill, and a response to a practical application of the theory. The assignment requires proper referencing with at least 6 references and must be submitted both electronically and in hard copy. Part B of the assignment involves providing calculations and journal entries for a specific case related to impairment of assets.

Learn about the nature and rules of reversal of impairment loss for goodwill. Understand the process, indicators, and disclosure requirements. Get insights into journal entries for impairment loss.

Reversal of Impairment Loss for Goodwill - Nature and Rules

Reversal of Impairment Loss for Goodwill - Understanding the Nature and Rules

This assignment focuses on understanding and applying the concept of impairment loss in accounting. It presents a scenario where a company has incurred an impairment loss and outlines the process of allocating that loss to individual assets like Goodwill, Patent, Building, and Fitting.  A journal entry is also provided to demonstrate how this impairment loss is recorded in the company's books.

Impairment Loss Allocation and Journal Entry

Corporate Accounting and Reporting (pdf)

This assignment delves into the accounting treatment of goodwill impairment as per International Accounting Standard (IAS) 36. It explains how impairments are recognized and measured, highlighting that while impairments on other assets can be reversed if circumstances improve, this is not possible for goodwill. The rationale behind this prohibition is discussed, emphasizing the distinction between purchased goodwill and internally generated goodwill, which cannot be recognized as an asset.

Goodwill Impairment and Reversal

This essay explains the concept of impairment loss for cash generating units including goodwill. It covers the purpose and objectives of the impairment test, allocation of goodwill to cash generating units, and the formula for computing impairment loss. The essay also discusses the need for regular implementation of the impairment test and the laws and standards that companies need to follow.

Impairment Loss for Cash Generating Units including Goodwill

The assignment content discusses the calculation of impairment loss for a chosen non-financial asset (CGU) and its allocation to specific assets within the CGU. The fair value, value in use, and recoverable amount are calculated to determine the impairment loss. The impairment loss is then allocated based on carrying amounts and weightage. Journal entries are also provided to record the impairment loss.

Calculus and Analysis

Calculation and Allocation of Impairment Loss: A Case Study

Report

This article discusses the reversal of impairment loss for goodwill and its treatment in the profit and loss account of a firm. It also covers the mandatory requirements for impairment loss reversal under AASB 136 and the impact of goodwill acquisition on impairment testing of cash generating unit.

Reversal of Impairment Loss for Goodwill - Understanding the Nature and Rules

Impairment Loss Allocation and Journal Entrylg...

Corporate Accounting and Reporting (pdf)lg...

Goodwill Impairment and Reversallg...

Impairment Loss for Cash Generating Units including Goodwilllg...

Calculation and Allocation of Impairment Loss: A Case Studylg...

Corporate Accounting and Reportinglg...

Impairment Loss Allocation and Journal Entry

Corporate Accounting and Reporting (pdf)

Goodwill Impairment and Reversal

Impairment Loss for Cash Generating Units including Goodwill

Calculation and Allocation of Impairment Loss: A Case Study

Corporate Accounting and Reporting