CERTYNEX IFRS ACADEMY

Valtorre Ltd holds a press carried at EUR 500,000. Analyses show that it will at best recover EUR 380,000, through use or through sale. Which statement is consistent with the objective of IAS 36?

The press can remain at EUR 500,000, since this amount results from correct accounting at cost.

The press must not remain in the statement of financial position at more than it will allow the entity to recover.

The press must be revalued to fair value, even if this fair value exceeds EUR 500,000.

The difference will only be dealt with when the press is actually sold, on derecognition.