Timing for impairment test on goodwill

In Singapore FRS 36, paragraph 96

”The annual impairment test for a cash-generating unit to which goodwill has been allocated may be performed at any time during an annual period, provided the test is performed at the same time every year. Different cash-generating units may be tested for impairment at different times. However, if some or all of the goodwill allocated to a cash-generating unit was acquired in a business combination during the current annual period, that unit shall be tested for impairment before the end of the current annual period.”

That is to say in the acquisition year in which the Purchase Price Allocation and goodwill is calculated on acquisition date, the management needs to test the impairment of the cash generating unit with the goodwill before that year end date. The management cannot wait until one year after acquisition date to perform the impairment test.