Question

A CGU comprises back-office software (finite life) and a customer list (indefinite life). Recoverable amount is below carrying amount due to regulatory pricing caps. How do you allocate impairment?

A First to indefinite-life intangibles, then pro-rata
B Pro-rata to all assets in CGU, excluding goodwill
C First to goodwill; residual pro-rata
D Pro-rata to all assets except those with specific recoverable amounts > carrying
E Only to depreciable assets
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