BC39 Under SFAS 144 and the proposals in ED 4, assets within the disposal group that are not within the scope of the IFRS are adjusted in accordance with other standards before measuring the fair value less costs to sell of the disposal group. Any loss or gain recognised on adjusting the carrying amount of the disposal group is allocated to the carrying amount of the long-lived assets of the group.
BC40 This is different from the requirements of IAS 36 for the allocation of an impairment loss arising on a cash-generating unit. IAS 36 requires an impairment loss on a cash-generating unit to be allocated first to reduce the carrying amount of goodwill and then to reduce pro rata the carrying amounts of the other assets in the unit.
BC41 The Board considered whether the allocation of an impairment loss for a disposal group should be consistent with the requirements of IAS 36 or with the requirements of SFAS 144. The Board concluded that it would be simplest to require the same allocation
…