CERTYNEX IFRS ACADEMY

Laiterie Brocéliane revalues a milk production quota by reference to an active market. At 31 December 20X1, the quota is revalued to 240,000; it is amortised on a straight-line basis over its remaining useful life of 4 years. During 20X2, trading on that market ceases and no observable price is available at the year-end. No impairment loss is identified. What is the carrying amount of the quota at 31 December 20X2?

Its acquisition cost less amortisation accumulated since purchase, as for an asset that was never revalued.

180,000, being the last revalued amount less the 20X2 amortisation.

The present value of the quota's expected cash flows, estimated at 210,000 by an expert.

240,000, the last revalued amount remaining frozen until an active market returns.