CGU impairment template
An Excel template for testing one cash-generating unit – or a group of units carrying goodwill – for impairment under IAS 36, from the reasons for the test to the draft note.
What it does
Records why the test is needed: the annual goodwill test and the IAS 36.12 indicators of impairment.
Calculates value in use from a five-year pre-tax cash-flow forecast with a terminal value (mid-year or end-of-year discounting), and fair value less costs of disposal from your valuation.
Compares the higher of the two – the recoverable amount – with the carrying amount of the unit's assets.
Allocates any impairment loss to goodwill first and then pro rata to the other assets, without taking an asset below its own recoverable amount, and prepares the journal.
Shows the headroom, value-in-use grids for changes in the discount and growth rates, the break-even discount rate and a draft note with the IAS 36 disclosure figures.
What you get
One Excel workbook (.xlsx) with an Instructions tab, the blank template and a completed worked example for a fictitious company.
Clearly marked input cells, protected formulas and built-in checks, with a status line on every tab.
Works in Microsoft Excel 2010 or later (Windows or Mac). No macros.
Scope
One unit per copy. Reversals of impairment, revalued assets, deferred tax effects and grossing up goodwill for non-controlling interests are not modelled. The discount rate and the forecast remain your judgements.
Designed for small and medium-sized businesses reporting under IFRS Accounting Standards. It is a working aid: it does not replace the Standards or professional judgement, and its scope and limitations are set out in the Instructions tab.
