CERTYNEX IFRS ACADEMY

Tavel holds broadcasting rights with an indefinite useful life, tested within the Media CGU, whose composition has not changed since 20X0. The 20X0 detailed calculation gave a recoverable amount of 10,300,000 against a carrying amount of 10,000,000. Management wishes to reuse this calculation for 20X1 to save the cost of a valuation. Is this possible?

No: an excess of 300,000, i.e. 3% of the carrying amount, is not a substantial margin.

Yes, as long as the recoverable amount exceeded the carrying amount, whatever the difference.

No, because reuse is only permitted for an asset tested on its own.

Yes, since the composition of the Media CGU has not changed since 20X0 and this condition alone is enough to allow reuse.