Impairment Testing — rigorous CGU valuation, defensible to the auditor and the board

Ind AS 36 requires entities to assess, at each reporting date, whether there is any indication that an asset may be impaired; and to test goodwill and indefinite-life intangibles for impairment annually (irrespective of indicator). Transique delivers full-scope impairment-testing exercises — CGU identification, recoverable-amount measurement (value-in-use or fair-value-less-costs-of-disposal), allocation of corporate assets, and sensitivity / disclosure support.

Our work covers routine annual reviews and trigger-based reviews (e.g., post-acquisition write-downs, post-impairment signal events). Every engagement is sized to the specific complexity — we do not sell one-size-fits-all impairment packages.

• You have goodwill or indefinite-life intangibles on your balance sheet and require the annual Ind AS 36 test.
• An impairment indicator has triggered a required test under Ind AS 36.
• Your auditor has queried the prior-period impairment analysis.
• You are planning a disposal, discontinuation or reorganisation with impairment implications.
• You are transitioning between reporting frameworks and need a baseline impairment review.

• CGU-identification memo — aligned to the way management monitors operations.
• Recoverable-amount analysis using VIU, FVLCD or both.
• Discount-rate build-up using India-specific risk premia; pre-tax rate derivation.
• Budget-stress-testing — reasonableness of the five-year forecast vs past performance.
• Sensitivity disclosures for the financial statements (key-assumption sensitivity).
• Auditor-walkthrough support.

• CGU identification. Review of internal management-reporting; align CGUs with the lowest level of largely independent cash inflows.
• Indicator review and scope confirmation.
• Forecast analysis. Five-year plan review; reasonableness; terminal-value.
• Recoverable amount. VIU or FVLCD per CGU; pre-tax discount rate; terminal growth rate.
• Sensitivity. Key-assumption stress-tests; triggers for potential future impairment.
• Disclosure support. Drafting language for notes to the financial statements.

• Pre-tax vs post-tax discount-rate reconciliation.
• Allocation of corporate assets and common costs to CGUs.
• Treatment of restructuring-related cash flows (excluded from VIU).