Nordmaris operates an offshore gas platform, which is a CGU whose assets have a carrying amount of 5,200,000. It has recognised a decommissioning provision of 1,100,000, an obligation that a buyer of the platform would have to assume. The price a buyer would pay for the platform and this obligation, less costs of disposal, is estimated at 4,250,000. Value in use projections, prepared excluding decommissioning outflows, give 5,000,000. What are the carrying amount to be used for the test, the recoverable amount and any impairment loss?
- Carrying amount of the platform's assets
- 5,200,000
- Decommissioning provision
- 1,100,000
- Fair value less costs of disposal (obligation assumed by the buyer)
- 4,250,000
- Value in use excluding decommissioning
- 5,000,000