CERTYNEX IFRS ACADEMY

The Alpilait cooperative collects and pasteurises milk in a dedicated plant. The plant sells 40% of the pasteurised milk to third-party manufacturers, on an active market, and delivers the remaining 60% to the group's cheese factory. The financial controller proposes to treat the plant as a CGU only for the portion sold externally and to attach the portion delivered internally to the cheese factory. Which analysis is correct?

The plant forms a single CGU for its entire output, including the portion delivered internally, measured at estimated future arm's length prices.

The plant is split in two: one CGU for external sales, with the internal portion attached to the cheese factory's CGU.

The plant is not a CGU, because most of its output is consumed by the group's cheese factory.

The plant forms a single CGU, but the portion delivered to the cheese factory stays measured at internal transfer prices, which are the only cash flows the plant actually receives.