Question · Materiality and sensitivity of the indicators

Delvaux operates a network of water treatment plants with a remaining useful life of about 30 years. In 20X1, central banks raise their policy rates sharply: short-term rates increase markedly, long-term rates much less. The 20X0 test showed a recoverable amount 35% above the carrying amount, and a sensitivity analysis showed that a noticeable increase in the discount rate would not result in a significant impairment loss. No other event is identified. The finance director wonders whether a full new estimate is needed. Write a judgement memo.