Document ID: chunk:federal_register_of_legislation:F2023C00180:front:0:p57
Version: federal_register_of_legislation:F2023C00180
Segment Type: other
Provision Reference: 
Character Range: 167308–172798

after reversal                                                                                                                                                                                                                                            115,000

Carrying amount: depreciated historical cost (Schedule 5)                                                                                                                                                                                                                 115,000(a)
  (a) The value in use of the machine exceeds what its carrying amount would have been at depreciated historical cost. Therefore, the reversal is limited to an amount that does not result in the carrying amount of the machine exceeding depreciated historical cost.

 Schedule 5. Summary of the carrying amount of the machine

Year                                                                                                  Depreciated historical cost  Recoverable amount  Adjusted depreciated charge  Impairment loss  Carrying amount after impairment

                                                                                                      CU                                               CU                                            CU                                   CU           CU

20X0                                                                                                  150,000                                          121,128                                       0                                    (28,872)     121,128
20X1                                                                                                  135,000                                          nc                                            (12,113)                             0            109,015
20X2                                                                                                  120,000                                          nc                                            (12,113)                             0            96,902
20X3                                                                                                  105,000                                          nc                                            (12,113)                             0            84,789
20X4                                                                                                  90,000                                                                                         (12,113)
enhancement                                                                                           25,000                                                                                         –
                                                                                                      115,000                                          122,072                                       (12,113)                             17,324       115,000
20X5                                                                                                  95,833                                           nc                                            (19,167)                             0            95,833
nc = not calculated as there is no indication that the impairment loss may have increased/decreased.

Example 7  Impairment testing cash-generating units with goodwill and non-controlling interests

Example 7A  Non-controlling interests measured initially as a proportionate share of the net identifiable assets
 In this example, tax effects are ignored.

Background
IE62 Parent acquires an 80 per cent ownership interest in Subsidiary for CU2,100 on 1 January 20X3. At that date, Subsidiary's net identifiable assets have a fair value of CU1,500. Parent chooses to measure the non-controlling interests as the proportionate interest of Subsidiary's net identifiable assets of CU300 (20% of CU1,500). Goodwill of CU900 is the difference between the aggregate of the consideration transferred and the amount of the non-controlling interests (CU2,100 + CU300) and the net identifiable assets (CU1,500).
IE63 The assets of Subsidiary together are the smallest group of assets that generate cash inflows that are largely independent of the cash inflows from other assets or groups of assets. Therefore Subsidiary is a cash-generating unit. Because other cash-generating units of Parent are expected to benefit from the synergies of the combination, the goodwill of CU500 related to those synergies has been allocated to other cash-generating units within Parent. Because the cash-generating unit comprising Subsidiary includes goodwill within its carrying amount, it must be tested for impairment annually, or more frequently if there is an indication that it may be impaired (see paragraph 90 of AASB 136).
IE64 At the end of 20X3, Parent determines that the recoverable amount of cash-generating unit Subsidiary is CU1,000. The carrying amount of the net assets of Subsidiary, excluding goodwill, is CU1,350.

Testing Subsidiary (cash-generating unit) for impairment
IE65 Goodwill attributable to non-controlling interests is included in Subsidiary's recoverable amount of CU1,000 but has not been recognised in Parent's consolidated financial statements. Therefore, in accordance with paragraph C4 of Appendix C of AASB 136, the carrying amount of Subsidiary is grossed up to include goodwill attributable to the