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CONSOLIDATIONS AFTER THE DATE OF ACQUISITION




            Impairment of Goodwill






            • This annual testing usually takes place at the

                reporting date when the recoverable amount of the

                goodwill is determined and compared to the


                carrying amount.


            • In cases where the recoverable amount of the


                goodwill is below the carrying amount, the goodwill

                is impaired by the difference between the

                recoverable amount and the carrying amount.



            • This impairment loss is recorded in profit and loss

                as part of “other expenses” (debited) and goodwill


                (asset) is credited with the same amount.





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