Local Sweets S . A . has two cash - generating units, Sweet Tooth and Candy Crush.
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Question:
Local Sweets SA has two cashgenerating units, Sweet Tooth and Candy Crush. At December the net assets of the two cashgenerating units were as follows:
Sweet Tooth Candy Crush
Cash
Inventory
Plant
Accumulated depreciation
Plant
Land
Buildings
Accumulated depreciation
Buildings
Goodwill
Addition information regarding the cashgenerating units assets is as follows:
a Sweet Tooths land had a fair value less costs of disposal of at December Candy Crushs land had a fair value less costs of disposal of at December
b Local Sweets SAs management conducted impairment testing on the companys assets at December and determined that Sweet Tooths recoverable amount was and Candy Crushs recoverable amount was
Required
Prepare the journal entries required at December to account for any impairment losses
Related Book For
International Financial Reporting and Analysis
ISBN: 978-1408075012
5th edition
Authors: David Alexander, Anne Britton, Ann Jorissen
Posted Date: