## CGU Impairment with Goodwill — Allocation and Reversal
### Step 1 — Allocate Impairment Loss in a CGU
When a Cash Generating Unit (CGU) is impaired, the impairment loss is allocated in a strict priority order:
1. First: Reduce Goodwill in the CGU to zero.
2. Then: Allocate the remaining loss pro-rata to other assets (but no individual asset below its own RA or zero).
### Step 2 — Post-Impairment Depreciation
After impairment, recalculate depreciation for each asset using its revised carrying amount over the revised remaining useful life.
### Step 3 — Reversal of Impairment Loss in CGU
When RA of CGU recovers:
| Asset Type | Can Impairment Be Reversed? | Cap |
|---|---|---|
| Goodwill | No — prohibited under AS 28 | — |
| Other assets | Yes | Max reversal cap applies per asset |
Special check for Goodwill reversal: If the goodwill's original useful life has already expired by the reversal date, the question is moot — goodwill is fully amortized and has zero carrying amount regardless.
### Step 4 — Max Reversal for Other Assets (in CGU)
Apply the same cap rule:
- CA if No Impairment = Original cost − Accumulated depreciation on original schedule
- Max Reversal = CA (if no impairment) − Current CA (after impairment & further depreciation)
- Actual Reversal = min(Max Reversal, Actual Potential Reversal from RA improvement)