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CFR Ltd. has defined its Assurance division as a cash-generating unit under IFRS. The company reported the following carrying amounts for this division at December
CFR Ltd. has defined its Assurance division as a cash-generating unit under IFRS. The company reported the following carrying amounts for this division at December 31, 2020: Computers $55,000 Furniture Equipment $27,000 $13,000 The computer repair division is being assessed for impairment. At December 31, 2020, the division's value in use is $80,000. Required: a. Determine if the Assurance division is impaired, assuming that none of the individual assets has a determinable recoverable amount. b. Prepare the journal to record the impairment from part (a), if any. c. Determine if the assurance division is impaired, assuming that the computers have a fair value less cost to sell of $60,000, but that none of the other assets have a determinable recoverable amount. d. Repeat part (c) assuming that the computers' fair value less cost to sell is $50,000
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