My company has revalued its goodwill on consolidation $1000 from INR 50,000 in 2010 (INR 50 per USD on the date of acquisition of subsidiaries) to INR 67,000 (INR 67 per USD as on year end) in line with IAS 21 with the corresponding effect given to Translation Reserve.
Now impairment testing through DCF model was done which valued goodwill at INR 45,000. What shall be the accounting treatment in this case? Which one shall be the right option:
1. Book the entire impairment of INR 22,000 (67,000 - 45,000) in Profit and Loss.
2. Book the impairment of only INR 5,000 (50,000-45,000) in Profit and Loss and INR 17,000 (67,000 - 50,000) in OCI
3. I should re-calculate the goodwill as per the DCF model in USD terms and check impairment in accordance with that