The following are procedures for recognition and measurement of impairment loss in a cash generating unit .
- First, reduce the carrying amount of any goodwill
- Then allocate the impairment loss to other assets on pro-rata basis of the carrying amount of each asset.
In allocating an impairment loss as stated above, an entity shall not reduce the carrying amount of an asset below the highest of :
- Its fair value less cost to sell,
- Its value in use