CERTYNEX IFRS ACADEMY

Orvalis operates a bottling line that is a CGU: carrying amount 900,000, recoverable amount 1,050,000. A labelling machine on the line, with a carrying amount of 90,000, has been damaged; its fair value less costs of disposal is 55,000 and its value in use cannot be estimated separately. What impairment loss should be recognised on the labelling machine?

A loss of 35,000, to bring the labelling machine down to its fair value less costs of disposal.

No impairment loss.

A loss of 90,000, as the value in use of the labelling machine cannot be determined.

A loss of 35,000 spread pro rata over all the assets of the line.