As 28
Shubham Jain (Haryana) (131 Points)
10 March 2018
What is top down and bottom up approach in calculation of recoverable amount for goodwill?
3 Replies
Pranay
(CA final)
(31 Points)
Replied 12 March 2018
first you must understand what a Cash generating unit is .A CGU is the smallest unit which is capable of generating independent cash flows.
In bottom up we compare the cash flows of company as a whole vs the cash flow of the independent CGU
In bottom up we compare the cash flows of company as a whole vs the cash flow of the independent CGU
Shubham Jain
(Haryana)
(131 Points)
Replied 12 March 2018
I think it is top down in which we first look cgu as a whole and then allocate it to goodwill
Pranay
(CA final)
(31 Points)
Replied 12 March 2018
plz go through the As and Ind As it's crisply written
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