What is the appropriate action for buster limited

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Question - Buster Ltd had purchased goodwill to the value of $100 000 recorded in its consolidated financial statements. The goodwill has been determined to have an indefinite useful life. However, one year later Buster Ltd's cash-generating units has been determined to have incurred an impairment loss of $13 000. What is the appropriate action for Buster limited to comply with AASB 138 Intangible Assets and AASB 136 Impairment of Assets?

Write-off goodwill in its entirety as goodwill no longer exists.

Recognise impairment loss of $13 000 and credit goodwill.

Amortise goodwill for 20 years using straight-line method.

Recognise impairment loss of $13 000 and credit equity.

Reference no: EM132621747

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