Question
A Cash generating unit comprises the following assets. Building: 1.050.000 $ Machines and Equipment: 450.000 $ Goodwill: 80.000 $ Inventory: 20.000 $ Total: 1.600.000 $
A Cash generating unit comprises the following assets.
Building: 1.050.000 $
Machines and Equipment: 450.000 $
Goodwill: 80.000 $
Inventory: 20.000 $
Total: 1.600.000 $
The company made an impairment test due to some internal and external indicators. The impairment test showed that the recoverable amount was:
a) 1.540.000 $
b) 1.450.000 $
Requirement: make the necessary journal entries for two alternatives
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
International Financial Reporting And Analysis
Authors: David Alexander, Ann Jorissen, Martin Hoogendoorn
8th Edition
