CERTYNEX IFRS ACADEMY

For the 31 December 20X2 reporting date, the management accountant of Belvarde Ltd proposes to stop examining indications of impairment for its property, plant and equipment: in his view, these assets are depreciated and no loss has ever been recognised. How should this proposal be answered?

Accept it, since a history without impairment losses removes the need to assess indications.

Accept it, but only for assets whose carrying amount is below an internal threshold set by management.

Reject it and estimate the recoverable amount of each item at every reporting date.

Reject it: whether indications exist must be assessed at each reporting date, recoverable amount being estimated only when an indication exists.