Excalibur Ltd operates in the Swan Valley in Western Australia where it is involved in the growing of grapes and the production of wine. In June 2016, it anticipated that its assets may be impaired due to a glut on the market for grapes and an impending tax from the Australian government seeking to reduce binge drinking of alcohol by teenage Australians.

Land is measured by Excalibur Ltd at fair value. At 30 June 2015, the entity revalued the land to its fair value of $120,300. The land had previously been revalued upwards by $20,000.

As a result of its impairment testing, Excalibur Ltd calculated that the recoverable amount of the entity?s assets was $1,455,100.

The carrying amounts of the assets of Excalibur Ltd prior to adjusting for the impairment test and the revaluation of the land were as follows:

Non-current assets

Buildings

$

849,600

Accumulated depreciation

(194,100

)

Land (at fair value 1/7/14)

128,200

Plant and equipment

1,453,100

Accumulated depreciation

(750,200

)

Goodwill

60,400

Accumulated impairment losses

(44,200

)

Trademarks ? wine labels

79,900

Current assets

Cash

6,900

Receivables

9,100