As part of adopting IFRS,goodwill acquired in a business combination is no longer amortised.Instead,the acquirer shall test goodwill for impairment (AASB 3 "Business Combinations").When is goodwill considered to be impaired?

Question

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Goodwill is considered to be impaired if the recoverable amount of the cash generating unit is less than the unit's carrying amount. This means that the value of the unit's assets and cash flows is lower than the amount recorded on the balance sheet, indicating that the goodwill is no longer worth its carrying amount and should be written down.

As Part of Adopting IFRS,goodwill Acquired in a Business Combination