Question
Gandalf Ltd has a year end of 31 December. On 30 October 2020 it classified an item of plant as held for sale. At
Gandalf Ltd has a year end of 31 December. On 30 October 2020 it classified an item of plant as held for sale. At that date the plant had a carrying amount of 13,200 and had been accounted for according to the cost model. Its fair value was estimated at 11,100 and the costs of disposal at 500. On 15 December 2020 the plant was sold for 10,500. In accordance with IFRS 5, Non-current Assets Held for Sale and Discontinued Operations what amounts should be recognised as impairment loss and loss on disposal in profit or loss for the year to 31 December 2020?
Step by Step Solution
3.36 Rating (143 Votes )
There are 3 Steps involved in it
Step: 1
As per IFRS 5 When Non current asset was classified as held for sale then it should be recognised a...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get StartedRecommended Textbook for
Financial Accounting and Reporting
Authors: Barry Elliott, Jamie Elliott
14th Edition
978-0273744535, 273744445, 273744534, 978-0273744443
Students also viewed these Accounting questions
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
View Answer in SolutionInn App