CERTYNEX IFRS ACADEMY

At Solvaro, the Synthesis CGU produces a solvent, traded on an active market, which it sells entirely to the group's Paints CGU at an internal price of 130 per tonne. Management estimates that future arm's length prices for the solvent will be around 100 per tonne. The Paints CGU shows indications of impairment and both values in use must be estimated. Which approach complies with IAS 36?

Use 100 per tonne for the Paints cash outflows, but keep 130 per tonne for the Synthesis cash inflows.

Use 100 per tonne for the Synthesis cash inflows, but keep 130 per tonne for the Paints cash outflows.

Keep 130 per tonne in both CGUs, since internal flows are eliminated on consolidation.

Use the estimate of 100 per tonne both for the Synthesis cash inflows and for the Paints cash outflows.