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A company has acquired another business for $9.5m: tangible assets are valued at $8.0m and goodwill at $1.5m. An asset with a carrying value of
A company has acquired another business for $9.5m: tangible assets are valued at $8.0m and
goodwill at $1.5m.
An asset with a carrying value of $1m is destroyed in a cyclone. The asset was not insured. The
loss of the asset, without insurance, has prompted the company to assess whether there has
been an impairment of assets in the acquired business and what the amount of any such loss is.
The recoverable amount of the business (a single cash generating unit) is measured as $7.5m.
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