IAASA has today published a decision about the accounting treatment applied by Glanbia plc in its 30 December 2023 annual financial statements. This decision focused on the identification of cash-generating units (CGUs) by the issuer which, in turn, impacts the level at which a company performs impairment tests.
Glanbia plc provided voluntarily undertakings that future financial statements will disclose that:
- each of the six businesses/brands constitute separate CGUs within the GPN Americas segment,
- the six CGUs are grouped together at the GPN Americas segment level for the monitoring of goodwill as the segment level represents the lowest level within the issuer at which the goodwill is monitored for internal management purposes, and that this fact represents a critical accounting judgement, and
- should an impairment indicator be identified in the future for any of these six CGUs, these CGUs will be tested for impairment.
You can find the full financial reporting decision here.