CERTYNEX IFRS ACADEMY

Valdorine Ltd has a 31 December reporting date. Every year it tests a licence with an indefinite useful life on 30 June. On 1 October 20X1, it acquires a second licence, also with an indefinite useful life. There is no indication of impairment at 31 December 20X1. Which analysis is consistent with IAS 36?

The first licence must now be tested on 31 December, so that both licences are tested on the same date.

The second licence need not be tested before 30 June 20X2, Valdorine's usual testing date.

Testing the first licence on 30 June is acceptable; the second licence must be tested before 31 December 20X1.

Neither licence needs to be tested in 20X1, since there is no indication of impairment.