IVC Snippets: Impact of IFRS 16 on the Goodwill Impairment Test
IVC is pleased to present the second issue of the IVC Snippets.
In this Snippet, we analyse the impact of IFRS 16 for the goodwill impairment test in accordance with IAS 36. We present in a simplified example how the impairment test can be carried out properly in practice after the introduction of IFRS 16. The three main challenges are breakdown of lease payments into depreciation and interest, the reinvestment rate, and appropriate determination of cost of capital.
You will find the current IVC Snippet here.