CERTYNEX IFRS ACADEMY

At 31 December 20X1, Ravelin Ltd reviews an assembly line carried at cost and depreciated over 10 years. Its documented analysis reveals no indication of impairment. The finance director nevertheless wants the value in use of the line to be calculated. Which statement is correct?

IAS 36 requires the value in use of the line to be calculated, since the test is annual for all assets.

In the absence of an indication, the line must be moved outside the scope of IAS 36 until the next reporting date.

In the absence of an indication, IAS 36 does not require the recoverable amount of the line to be estimated; the assessment of indications must be repeated at the next reporting date.

The absence of an indication means no further indications need to be sought for this line until the end of its useful life.