CERTYNEX IFRS ACADEMY

An extruder of Ternay Plastiques has been damaged but is still working. Its value in use cannot be estimated individually, because it does not generate independent cash inflows, and its fair value less costs of disposal is below its carrying amount. The CGU to which it belongs is not impaired. What treatment applies to the extruder?

Write it down to its fair value less costs of disposal.

Recognise no impairment loss on the extruder.

Impair the whole CGU by the shortfall observed on the extruder.

Write it down to zero, as its value in use cannot be determined.