Question
5-A-DAY is a chain of 12 fruit and veg stores. Each 5-A-DAY store is classified as its own cash generating unit (CGU). 5-A-DAYs accounting department
5-A-DAY is a chain of 12 fruit and veg stores. Each 5-A-DAY store is classified as its own cash generating unit (CGU).
5-A-DAYs accounting department is conducting an impairment review of one of their CGUs. The assets of this particular CGU are detailed below.
Goodwill: R60 000
Property: R200 000
Intangibles: R23 000
Equipment: R25 000
Other: R10 000
The impairment review has revealed that the fair value of the CGUs property is R180 000 and the net assets of the store as a whole is R210 000.
Calculate the amounts that are allocated to impairments for other, intangibles, goodwill and property. (5)
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