A Ltd has identified an impairment loss of $12,000 on one of its
Added on - 16 Sep 2019
2
pages
241
words
65
views
0
downloads
•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 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
You’re reading a preview
To View Complete Document
Become a Desklib Library Member.
Subscribe to our plans