CERTYNEX IFRS ACADEMY

In the 20X0 test, the recoverable amount of Sorbel's Packaging CGU exceeded its carrying amount by 25%. In 20X1, its main customer, which accounted for 45% of the CGU's revenue, terminates its contract. The finance director proposes not to re-estimate the recoverable amount, relying on the headroom found in 20X0. What should be concluded?

The proposal is acceptable: 25% headroom is significant and removes the need for any new estimate.

The proposal must be rejected: the loss of the customer is an event that may have eliminated the headroom, so the exemption does not apply.

It is enough to apply a 45% reduction to the 20X0 recoverable amount, without further analysis.

The headroom found in 20X0 exempts the CGU from any test for three years.