This course focuses on how IAS 36 applies when testing cash-generating units for impairment. It explains why assets are grouped into CGUs and how impairment testing works when cash inflows cannot be linked to individual assets. The course builds a clear understanding of when a CGU must be tested, how recoverable amount is measured, and how impairment losses are recorded. You will learn how to identify CGUs in real business settings and how management judgment affects impairment decisions.

The course explains value in use and fair value less costs of disposal using practical examples rather than heavy theory. It also covers how impairment losses are allocated within a CGU, including the treatment of goodwill, and when reversals are allowed. By the end of the course, you will be able to apply IAS 36 rules with confidence, avoid common errors in CGU impairment testing, and support sound financial reporting and audit judgments.

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Upon completion of this course, learners will be able to:

• Identify when a CGU must be tested for impairment.
• Define and allocate assets to CGUs correctly.
• Calculate recoverable amount using both value in use and fair value less costs of disposal.
• Allocate impairment losses within a CGU following IAS 36 rules.
• Apply judgment in areas such as assumptions, forecasts, and discount rates.
• Avoid common errors seen in CGU impairment testing and disclosures.