CERTYNEX IFRS ACADEMY

Valcourt tests at the same time its Printing CGU, to which goodwill is allocated, and several rotary presses of that unit whose recoverable amount can be estimated individually. In what order must it proceed?

Test the CGU first, then the presses, to avoid impairing the same asset twice.

Test the presses first, then the CGU.

Test the CGU and the presses simultaneously and keep only the higher of the two losses.

Test only the CGU, since it is the unit to which goodwill is allocated.