For IFRS impairment under the partial goodwill The CFAI book says “An impairment loss is recognized if the recoverable amount of the cash-generating unit is greater than its carrying value” So if recoverable amount > carrying value = impairment (Does that sound right?) Isn’t it if recoverable amt < carrying value = impairment? On the next page with the examples they have: Solution: Recoverable Amt 1,300,000 - Carrying Value Amt 1,400,000 __________________________ Impairment loss 100,000 So… Recoverable Amt < Carrying Value --> Impairment Isn’t recoverable amt , fair value?
Congrats! You have found an errata. “In the table at the top of p. 47, the impact of partial goodwill on ROE should be 13.57 (instead of 15.32). Also on p. 47, in the ninth line of the third paragraph of Section 6.4.5, change greater to less: ’ …if the recoverable amount of the cash-generating unit is less than its carrying value.’”