CERTYNEX IFRS ACADEMY

A previous analysis by Quintal showed that the recoverable amount of its distribution network is not sensitive to changes in the price of diesel. This year, that price fluctuates sharply, which management regards as an indication. No other new factor is identified. What does the standard allow?

Nothing: as soon as an indication appears, the recoverable amount must be recalculated in full, whatever the previous analysis shows.

Quintal may rely on the previous analysis, which shows that the recoverable amount is not sensitive to this indication, and not re-estimate it.

Quintal must redo a sensitivity analysis every month for every possible indication.

Quintal may ignore the indication only if its auditor authorises it in writing.