CERTYNEX IFRS ACADEMY

At Tessane, a kiln in the Ceramics CGU, to which goodwill is allocated, suffered a breakdown during the year: there is an indication of impairment for this kiln, whose recoverable amount can be estimated individually. The annual test of the CGU takes place in the same period. What must the company do?

Test the kiln and recognise any loss on it, then test the CGU.

Test only the CGU, the kiln's breakdown necessarily being captured by the recoverable amount of the unit as a whole.

Test the CGU first, then the kiln, charging any loss on the kiln to the unit's goodwill.

Postpone the annual test of the CGU to the next year, the loss on the kiln being enough for this year.