why are we using recoverable amount instead of fair value
whreas as per IFRS impairent is calulated compaing, fair and carrying value
please correct me…
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Hi. I think you are getting confused. CarryingValue is compared with FMV under US GAAP. Under IFRS, it’s a single step procedure where we just compare Carrying Value of the unit with the Recoverable Amount. If CV> Recoverable Amount, then there is an impairment of goodwill. You may refer to the class notes once for better understanding. Hope this helps!