Impairment of a CGU LO5 Spear Ltd reported the following information in its statement of
Question:
Impairment of a CGU LO5 Spear Ltd reported the following information in its statement of financial position at 30 June 2019. Plant $ 650 000 Accumulated depreciation — plant (150 000) Intangible assets 300 000 Accumulated amortisation (100 000) Land 300 000 Total non‐current assets 1 000 000 Cash 50 000 Inventories 180 000 Total current assets 230 000 Total assets $1 230 000 Liabilities 150 000 Net assets $1 080 000 At 30 June 2019, Spear Ltd analysed the internal and external sources of information that would indicate deterioration in the worth of its assets. It determined that there were indications of impairment. Spear Ltd calculated the recoverable amount of the assets to be $980 000. Required Provide the journal entry for any impairment loss at 30 June 2019.
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Financial Reporting
ISBN: 978-0730363361
2nd Edition
Authors: Janice Loftus ,Ken Leo ,Sorin Daniliuc ,Belinda Luke ,Hong Nee Ang ,Karyn Byrnes