AASB 136 Impairment of Assets 80-87: Allocate acquired goodwill from the acquisition date to the units or groups of units expected to benefit from the combination's synergies, at the lowest level at which management monitors goodwill and no larger than an operating segment before aggregation; finish the allocation by the end of the following annual period; on disposal of an operation or a reorganisation, reallocate goodwill on relative values unless a better method is demonstrated

What does 80-87 require?

Goodwill from a business combination is allocated for impairment testing, from the acquisition date, to every unit or group of units of the acquirer expected to gain from the combination's synergies, whether or not other acquiree assets or liabilities are assigned to them. Each unit or group must be the lowest level at which management monitors the goodwill internally and no larger than an operating segment under AASB 8 before aggregation; this normally mirrors how the business is managed, so new reporting systems are not usually needed, and the level need not match the lower level at which AASB 121 allocates goodwill for foreign exchange purposes. Where the initial allocation cannot be finished by the end of the annual period of the acquisition, for instance because AASB 3 provisional accounting is still open, it must be finished by the end of the next annual period after the one in which the acquisition fell, and the unallocated amount is disclosed under paragraph 133. When an operation within a unit is disposed of, the goodwill tied to it is included in its carrying amount for the gain or loss and measured on the relative values of the operation sold and the part retained, unless another method demonstrably reflects the goodwill better; a reorganisation that changes the composition of units with goodwill triggers a reallocation on the same relative value approach, with the same exception.