CERTYNEX IFRS ACADEMY

Pêcheries Armorine, which applies the cost model to its intangible assets, is considering adopting the revaluation model for its portfolio of transferable fishing licences. What condition must be met for a licence in this portfolio to be revalued?

An independent expert estimates its fair value by discounting the cash flows the licence is expected to generate.

Its fair value can be measured by reference to an active market.

Its useful life is indefinite, so the licence is not amortised.

Its fair value durably exceeds its acquisition cost.