BCZ178 IAS 36 includes requirements for the allocation of an impairment loss for a cash‑generating unit that differ from the proposals in E55. In particular, E55 proposed that an impairment loss should be allocated:
(a) first, to goodwill;
(b) secondly, to intangible assets for which no active market exists;
(c) thirdly, to assets whose net selling price [In IFRS 5 Non‑current Assets Held for Sale and Discontinued Operations, issued by the IASB in 2004, the term ‘net selling price’ was replaced in IAS 36 by ‘fair value less costs to sell’.] is less than their carrying amount; and
(d) then, to the other assets of the unit on a pro‑rata basis based on the carrying amount of each asset in the unit.
BCZ179 The underlying reasons for making this proposal were that:
(a) an impairment loss for a cash‑generating unit should be allocated, in priority, to assets with the most subjective values. Goodwill and intangible assets for which there is no active market were considered to
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