CERTYNEX IFRS ACADEMY

Sorgue holds an operating licence with an indefinite useful life, tested on its own because it generates its own cash flows. The detailed calculation made in 20X1 showed a recoverable amount of 9,000,000 against a carrying amount of 5,000,000. In 20X2, no event affects the licence and management considers it very unlikely, in view of the circumstances, that its recoverable amount has fallen below its carrying amount. What can Sorgue do for the 20X2 test?

Use the detailed calculation from 20X1, since the conditions for reuse are met.

Necessarily perform a new detailed calculation, since reusing a previous calculation is never allowed for an asset tested on its own.

First allocate the licence to a CGU, because reuse is only possible if the composition of a CGU has remained unchanged.

Reuse the calculation only if the margin exceeds 100% of the carrying amount.