TAXYOU editorial · Reviewed 19 October 2026
Under IAS 36, goodwill acquired in a business combination is assessed for impairment each year. The review considers recoverable amounts of the cash-generating units to which that goodwill is allocated.
Recoverable amount is the higher of value in use and fair value less disposal costs. For other assets within IAS 36, impairment testing is generally triggered by an indication of impairment, subject to the standard’s specific annual-testing requirements.
For scoping, bring the acquisition accounting, allocation of goodwill, approved forecasts and prior assessments. The required work depends on the reporting framework, evidence and valuation assumptions. Agree specialist input and auditor requirements before commissioning the assessment.
General guidance for identifying and scoping a requirement. The applicable facts and professional framework determine the work needed for your business.