Question
At 28 February 2022, ST Ltd is operating a business division identified as a Cash Generating Unit. The following information relates to a Cash Generating
At 28 February 2022, ST Ltd is operating a business division identified as a Cash Generating Unit. The following information relates to a Cash Generating Unit (CGU) of ST Ltd for the year ended 28 February 2022
Building R40 000 000
Intangible Asset R 8 000 000
Goodwill R12 500 000
Inventory R 2 000 000
An Impairment test was carried out on the 28 February 2022 and the Cash Generating Unit now has a fair value of R50 000 000.The related disposal cost is R4 500 000.The value in use is R36 000 000
CALCULATE AND ALLOCATE THE IMPAIRMENT LOSS OF THE CGU FOR THE YEAR ENDED 28 February 2022
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Accounting for Governmental and Nonprofit Entities
Authors: Earl R. Wilson, Jacqueline L Reck, Susan C Kattelus
15th Edition
978-0256168723, 77388720, 256168725, 9780077388720, 978-007337960
