Exercise 7.1 Determining recoverable amount and impairment adjustments

Consider the following information relating to five different items of plant and equipment at the reporting date.

AssetCarrying amount $Fair value $Costs of disposal $Value in use $

A100 000105 0003 000110 000

B50 00045 0001 00048 000

C80 00085 0002 00082 000

D200 000190 0005 000220 000

E120 000120 0003 000115 000

Required

Calculate the recoverable amount for each of the five items of plant and equipment.

Assuming plant and equipment is carried under the cost model, determine the amount of any impairment adjustment necessary.

Assuming plant and equipment is carried under the revaluation model, determine the amount of any revaluation adjustment necessary.