CERTYNEX IFRS ACADEMY

Corvane's headquarters building shows an indication of impairment following a sharp fall in office property prices in its city. The company has not decided to dispose of the building, which serves all its CGUs. How must it proceed?

Estimate the value in use of the headquarters on its own, from the cash flows it would generate alone.

Determine the recoverable amount of the CGU or group of CGUs to which the headquarters belongs.

Do nothing: a corporate asset generates no cash flows and therefore can never be impaired.

Recognise a loss equal to the estimated fall in office property prices, without any further test.