CERTYNEX IFRS ACADEMY

In Castelbon's plant, a conveyor links the cutting machine to the packaging line. It generates no cash inflows separate from those of the production line. Its fair value less costs of disposal, limited to a scrap value, is below its carrying amount, and the entity continues to use it fully. An indication of impairment affects the line. At what level should the recoverable amount be estimated?

At the level of the conveyor alone, using its scrap value as recoverable amount.

At the level of the CGU to which the conveyor belongs.

At the level of the conveyor alone, attributing to it a separate value in use estimated by management.

At the level of the whole entity, regardless of its organisation.