Intangibles and Impairment.

1. Using references to the relevant accounting standards explain the required or recommended accounting treatment of the following transactions or events.

a. A revenue generating unit comprising the following assets with a goodwill of $30,000 has been impaired by $50,000.

Instructions Required 1. Using references to the relevant accounting standards explain the required or recommended accounting treatment of the following transactions or events a. A revenue generating unit comprising the following assets with a goodwill of $30,000 has been impaired by $50,000 Original Cost $300,000 $150,000 $50,000 Asset Accum Depr & Carrying Impairment $80,000 Buildings Machiner Motor vehicles $80,000 Goodwill amount $220,000 $100,000 $50,000 $20,000 $30,000 $10,000 $30,000 In your answer you should set out the steps that you have taken and make reference to the relevant section of the accounting standard (5 Marks) b. Briefly explain the rationale for your treatment of goodw in the above example Marks) (2