A Ltd has identified an impairment loss of $12,000 on one of its

Added on - 16 Sep 2019

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A Ltd has identified an impairment loss of $12,000 on one of its CGUsThe CGU consists of the following assets (stated at current carrying amounts):Buildings500,000Equipment300,000Land250,000Fittings150,000The FV-CD of the building is $497,000Required:Calculate the allocation of impairment loss against all assets in the CGUCAPro-rataImpairment lossallocatedAdjusted CABuildings500,0005/125,000495,000Equipment300,0003/123,000297,000Land250,0002.5/122,500247,500Fittings150,0001.5/121,500148,5001,200,00012,000As the FV-CD of the building is $497,000, the maximum impairment loss that can be allocated to thebuilding is limited to $3,000. The remaining $2,000 must be allocated across the other assets in theCGUAdjusted CAPro-rataImpairment lossallocatedTotal impairment lossallocated
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