A Ltd has identified an impairment loss of $12,000 on one of its
Added on -2019-09-16
| 2 pages
| 241 words
| 223 views
Trusted by 2+ million users, 1000+ happy students everyday
Showing pages 1 to 1 of 2 pages
•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
Found this document preview useful?
You are reading a preview Upload your documents to download or Become a Desklib member to get accesss