CERTYNEX IFRS ACADEMY

Rivesalte has decided to take a packaging line out of service and to sell it in two months; until then, the cash flows expected from its use are negligible. The line does not generate largely independent cash inflows and its fair value less costs of disposal, which can be measured, is below its carrying amount. At what level should its recoverable amount be determined?

At the level of the largest group of CGUs in the entity, out of prudence.

At the CGU level in all cases, because the line does not generate cash inflows that are largely independent of those of the plant's other assets.

At the level of the line itself, since its value in use can be estimated to be close to its fair value less costs of disposal, which is measurable.

At the level of the whole entity, since the line is to be sold.