CERTYNEX IFRS ACADEMY

Aldara, a single legal entity, carries on three activities: dairy, road haulage and printing. Each activity has its own customers; management monitors them separately and is considering selling the printing business. For impairment testing, Aldara uses the entire entity as a CGU: the printing loss is thus offset by the profitability of the dairy. What do you think of this choice?

It is correct, because a single legal entity can have only one CGU as long as its accounts are prepared on an overall basis

It is contrary to IAS 36: the CGU must be sought at the lowest level, at most at the level of each activity

It is correct provided that the total recoverable amount of the entity exceeds its total carrying amount, which proves there is no loss

Printing should be grouped with haulage, two activities exposed to the same risks, and the dairy tested separately