E & S is a medium sized audit and assurance practice. The partner who heads up the IFRS division has mentioned in recent meeting that impairment testing under IAS 36 impairment of assets is an important issue for many clients and regulators often scrutinize the disclosures about impairment testing in the financial statements The partner has appointed you as part of the team to design the IFRS handbook on impairments. Your answers should address each of the following issues:

Identification of CGUs

Allocation of assets to CGUs

Identification of impairment indicators

Calculation of the recoverable amount of a CGU

Calculation of the impairment loss of a CGU and

Allocation of impairment losses to assets within the CGU Ignore corporate assets