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As 28
What is top down and bottom up approach in calculation of recoverable amount for goodwill?
Replies (3)
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
I think it is top down in which we first look cgu as a whole and then allocate it to goodwill
plz go through the As and Ind As it's crisply written
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