Calculation of Impairment Loss

GAAP 

• Step 1: (Undiscounted Future Net CF or Fair Value of Reporting Unit) less <Net Carrying Value>
• Positive: ok 
• Negative: IMPAIRMENT --> Step 2
• Step 2: 
• (FV/PV future net CF) less <Net Carrying Value>
• FV of underlying assets less FV of the reporting unit (goodwill)

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IFRS

(Recoverable Amount) less <Carrying Value> = OK/ <impairment>

• Recoverable Amount is greater of: 
• FV - Cost to sell = NRV
• PV of future CF