Assets are typically assessed for impairment individually. However, if an asset's cash inflows are not largely independent of those from other assets, the recoverable amount is determined for the cash-generating unit (CGU) to which it belongs. This approach is taken unless:
•the asset’s fair value less costs of disposal is higher than its carrying amount; or
•the asset’s value in use can be estimated to be close to its fair value less costs of disposal, and this fair value can be measured (IAS 36:22, IAS 36:66–67).
Example – Recoverable amount of an individual asset cannot be determined Reproduced from IAS 36:67 |
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