CERTYNEX IFRS ACADEMY

At 31 December 20X2, Corbière Ltd identifies an indication of impairment on a packaging line (carrying amount: EUR 420,000). It estimates its recoverable amount at EUR 455,000. The analysis also shows that the line will be replaced earlier than planned. What should Corbière do?

Recognise an impairment loss, since an indication was identified at the reporting date.

Recognise no impairment loss, but consider whether the remaining useful life, depreciation method or residual value of the line should be reviewed.

Increase the carrying amount of the line to its recoverable amount of EUR 455,000.

Do nothing further, since the recoverable amount covers the carrying amount.