Outside the mandatory annual tests, materiality governs whether a fresh estimate of recoverable amount is needed: where a previous calculation showed recoverable amount well above carrying amount and nothing has eroded that margin, or earlier sensitivity analysis showed the asset is not sensitive to a particular indicator, no new estimate is required. A rise in market rates, for instance, need not prompt a re-estimate where the discount rate is unlikely to be affected (short-term rate rises against a long-lived asset) or where prior sensitivity work shows cash flows would rise in step or any fall in recoverable amount would not produce a material loss. Whenever a sign of impairment appears, the entity also considers whether the asset's remaining useful life, depreciation or amortisation method or residual value needs revising under the Standard that governs the asset, whether or not a loss is recognised.
The graph holds this control, the 0 it maps to, and the evidence behind each claim, over MCP and REST.