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IAS 36 –
Impairment of assets
Case Studies
1-2

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Case 1: Impairment

Follow Me Co. acquired in 2007 Conta Co., a company in the computer

industry. Conta Co. has 3 Cash Generating Units (CGU). It is not
possible to determine the fair value. The following information is given :

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=_]`edVb 12-$--- 1/-$--- 4-$---
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?hdVb^R\ >VfZTVc 1--$--- 11-$--- 2-$---

How should this case be treated in the financial statements?

Solution: Click here

Contents: Click here

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Case 2: Impairment

The VaVo Group, a company in the furniture industry, has acquired

Furno Co. in 2007 for $1.2 million. Goodwill included is $500‘000.

In 2008 sales figures of Furno Co. are underperforming.

The following information for Furno Co. is given:

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6--$---
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32-$---
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.2-$---

Should the Goodwill be impaired as of December 31, 2008?

Solution: Click here

Contents: Click here

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