Question
A business has a cash generating unit (CGU) which has suffered a large fall in income. An impairment review has determined that the recoverable amount
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A business has a cash generating unit (CGU) which has suffered a large fall in income. An impairment review has determined that the recoverable amount of the CGU is 50m. The assets of the CGU had the following carrying amounts just before the impairment review:
Goodwill 20m
Intangibles 10m
Property, plant & equipment 30m
Inventory 20m
Receivables 10m
Total 90m
The inventory and receivables are considered to be included above at their recoverable amounts.
What is the carrying amount of intangibles once the impairment loss has been allocated?
10m
5m
6m
0
A business has a cash generating unit (CGU) which has suffered a large fall in income. An impairment review has determined that the recoverable amount of the CGU is 50m. The assets of the CGU had the following carrying amounts just before the impairment review:
Goodwill 20m
Intangibles 10m
Property, plant & equipment 30m
Inventory 20m
Receivables 10m
Total 90m
The inventory and receivables are considered to be included above at their recoverable amounts.
What is the carrying amount of intangibles once the impairment loss has been allocated?
| 10m | ||
| 5m | ||
| 6m | ||
| 0 |
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The Business Strategy Audit
Authors: Vernal Della-Piana, Murray Low, Kendall Lyman
1st Edition
978-0955970740
