A Ltd has identified an impairment loss of $12,000 on one of its
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Added on 2019-09-16
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•A Ltd has identified an impairment loss of $12,000 on one of its CGUs•The CGU consists of the following assets (stated at current carrying amounts):–Buildings500,000–Equipment300,000–Land250,000–Fittings150,000•The FV-CD of the building is $497,000Required:•Calculate the allocation of impairment loss against all assets in the CGUCAPro-rataImpairment loss allocatedAdjusted CABuildings500,0005/125,000 495,000Equipment300,0003/123,000297,000Land250,0002.5/122,500247,500Fittings150,0001.5/12 1,500 148,5001,200,000 12,000As the FV-CD of the building is $497,000, the maximum impairment loss that can be allocated to the building is limited to $3,000. The remaining $2,000 must be allocated across the other assets in the CGUAdjusted CAPro-rataImpairment loss allocatedTotal impairment loss allocated
