CERTYNEX IFRS ACADEMY

In which of the following cases may the recoverable amount be determined for the individual asset, rather than for its CGU?

The asset does not generate largely independent cash inflows, its fair value less costs of disposal is below its carrying amount and its value in use is far from that fair value.

The asset generates cash inflows that are largely independent of those from other assets.

The asset represents a significant amount in the statement of financial position.

The asset's fair value less costs of disposal is higher than its carrying amount.

The asset's value in use can be estimated to be close to its fair value less costs of disposal, and the latter can be measured.

Management prefers an asset-by-asset test to simplify its reporting.