CERTYNEX IFRS ACADEMY

At 31 December 20X1, Pellmont Ltd identifies an indication of impairment on one of its warehouses. What is the immediate consequence under IAS 36?

Recognising a flat-rate impairment loss equal to 10% of the warehouse's carrying amount.

Waiting for the next reporting date to see whether the indication is confirmed before acting.

Estimating the recoverable amount of the warehouse.

Writing the warehouse down directly to fair value, without further analysis.