MFRS 136 - Identifying cash-generating units
Insights into MFRS 136In this article we discuss how to identify cash-generating units (CGUs), and in our following articles how to allocate assets to them and also then to allocate goodwill to them.
This article provides an ‘at a glance’ overview of MFRS 136’s main requirements and outlines the major steps in applying those requirements.
MFRS 136 ‘Impairment of Assets’ is not a new Standard, and while many of its requirements are familiar, an impairment review of assets (either tangible or intangible) is frequently challenging to apply in practice. This is because MFRS 136’s guidance is detailed, prescriptive and complex in some areas.
The articles in our ‘Insights into MFRS 136’ series have been written to assist preparers of financial statements and those charged with the governance of reporting entities understand the requirements set out in MFRS 136, and revisit some areas where confusion has been seen in practice.
Our publication will cover:
- Objective of MFRS 136
- MFRS 136: Key definitions
- MFRS 136's step by step impairment approach
How we can help
We hope you find the information in this article helpful in giving you some insight into MFRS 136. If you would like to discuss any of the points raised, please do not hesitate to contact us.
Silvia Tan
Partner - Risk Management and Quality
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MFRS 136 - If and when to undertake an impairment review
Insights into MFRS 136This article explains if and when a detailed impairment test as set out in MFRS 136 is required. The guidance prescribes different requirements for goodwill and indefinite life intangible assets (including those not ready for use) when compared to all other assets. As such, this article will cover Step3 in the impairment review which is to determine if and when to test for impairment is needed.
Scope and structure of MFRS 136
Insights into MFRS 136This article, Scope and structure of MFRS 136, looks at the scope of the impairment review (i.e. the types of assets that are included) and how it is structured (i.e. the level at which assets are reviewed).