CERTYNEX IFRS ACADEMY

Quillan Énergies has allocated the loss of its Hydro Plant CGU: goodwill is reduced to zero and every other asset is already at its floor (the highest of its fair value less costs of disposal, its value in use and zero). A remaining loss of 30,000 is still unallocated. No other standard requires a liability to be recognised for it. What should the entity do?

Recognise a provision of 30,000 for the unallocated loss.

Reduce the assets below their floors, pro rata to their carrying amounts, to absorb the 30,000.

Recognise nothing further: no reduction below the floors and no liability.

Recognise negative goodwill of 30,000 attached to the unit, to be reversed in later tests.