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IFRS 5 — Reversal of disposal group impairment losses relating to goodwill

Date recorded:


The Committee received a request for guidance on whether an impairment loss for a disposal group classified as held for sale can be reversed if it relates to the reversal of an impairment loss recognised for goodwill.

The Committee noted a potential conflict between the guidance in paragraph 22 and paragraph 23 of IFRS 5 Non-current Assets Held for Sale and Discontinued Operations relating to the recognition and allocation of the reversal of an impairment loss for a disposal group when it relates to goodwill. However, the Committee also observed that the issue may not be resolved efficiently within the confines of existing IFRSs and the Framework and that it is not probable that the Committee will be able to reach a consensus on a timely basis.


Decision not to add

May 2010



The Committee also noted the decision taken by the Board in December 2009 not to add a project to its agenda to address IFRS 5 impairment measurement and reversal issues at this time. Consequently, the Committee decided not to add this issue to its agenda and recommended that the Board address this issue in a post-implementation review of IFRS 5.


IFRIC reference: IFRS 5-4

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