The Pierrelune quarry forms a CGU. Its assets have a carrying amount of 2,400,000, and a provision for site restoration is recognised for 500,000. Any buyer of the quarry would have to assume this obligation: the fair value less costs of disposal of the whole, obligation included, is estimated at 1,750,000. Value in use, calculated without considering restoration outflows, is 2,300,000. Determine the carrying amount to be compared, the recoverable amount and the impairment loss.
- Carrying amount of the CGU's assets
- 2,400,000
- Restoration provision
- 500,000
- Fair value less costs of disposal (obligation assumed)
- 1,750,000
- Value in use before restoration outflows
- 2,300,000