1. In accordance with IAS 36 Impairment, provide the definition of an impairment loss

(2 marks)

2. State four examples of different indicators of impairment

(4 marks)

The following information is available relating to a cash generating unit belonging to Bliss plc:

m

Building 60

Plant and Equipment 12

Goodwill 20

Current Assets 40

132

Following an industrial accident, it has been determined that the recoverable amount of the cash generating unit to be 100m. The current assets are already at their recoverable amount.

3. Determine the impairment loss relating to this Cash Generating Unit. Allocate the impairment loss to the cash generating unit, and show the value of each of the assets listed above once the impairment loss has been allocated.

(9 marks)