CERTYNEX IFRS ACADEMY

Mérens holds a beverage brand with an indefinite useful life, tested within the Beverages CGU. The 20X0 detailed calculation showed a recoverable amount 40% above the carrying amount of the CGU. In 20X1, Mérens adds to this CGU an acquired plant and two production lines, almost doubling its assets; no other adverse event is identified. Can it reuse the 20X0 calculation for the 20X1 test?

No: the composition of the CGU has changed significantly, so one of the cumulative conditions is not met.

Yes, provided it simply adds to the recoverable amount calculated in 20X0 the price paid for the plant and the two lines added to the CGU.

No, because a previous calculation can never be reused for an intangible asset with an indefinite useful life.

Yes: the 40% margin alone is enough to allow reuse.