BC137 The previous version of IAS 36 required goodwill to be tested for impairment as part of impairment testing the cash‑generating units to which it relates. It employed a ‘bottom‑up/top‑down’ approach under which the goodwill was in effect tested for impairment by allocating its carrying amount to each of the smallest cash‑generating units to which a portion of that carrying amount could be allocated on a reasonable and consistent basis.
BC138 Consistently with the previous version of IAS 36, the Exposure Draft proposed that:
(a) goodwill should be tested for impairment as part of impairment testing the cash‑generating units to which it relates; and
(b) the carrying amount of goodwill should be allocated to each of the smallest cash‑generating units to which a portion of that carrying amount can be allocated on a reasonable and consistent basis.
However, the Exposure Draft proposed additional guidance clarifying that a portion of the carrying amount of goodwill shoul
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