CERTYNEX IFRS ACADEMY

Under IAS 36, when the recoverable amount of an individual asset cannot be determined and its CGU is impaired, in which case is an impairment loss recognised on that asset?

As soon as its carrying amount exceeds its fair value less costs of disposal, whatever the situation of the unit.

Never: an asset without its own recoverable amount cannot be impaired.

If its carrying amount exceeds the higher of its net fair value and the result of the allocation.

If its carrying amount exceeds the lower of its fair value less costs of disposal and the result of the allocation.