CERTYNEX IFRS ACADEMY

Tavira's draft note states: following a lasting fall in occupancy, an impairment loss of 180,000 was recognised on the Lake hotel, whose recoverable amount is 1,200,000. This recoverable amount is value in use, calculated with a discount rate of 8% (7% in the previous estimate). What is missing?

Nothing: the note already mentions the event, the amount of the loss and the recoverable amount.

The level of the fair value hierarchy within which the hotel is categorised.

Only the rate of 8%, since the rate used in the previous estimate need not be disclosed in the note.

The basis of the recoverable amount (value in use) and the discount rates of 8% and 7%.