Q: On 31 December 20X1 Invest purchased all the shares of MH for $2m. The net fair value of the identifiable assets acquired, and liabilities assumed of MH at that date was $1.8m.

MH made a loss in the year ended 31 December 20X2 and at 31 December 20X2 the net assets of MH - based on fair values at 1 January 20X2 - were as follows:

$'000

Property, plant and equipment

Capitalized development expenditure

Net current assets

200

1.300

250

1,750

An impairment review on 31 December 20X2 indicated that the recoverable amount of MH at that date was \$ 1.5m

The capitalized development expenditure has no ascertainable external market value and the current fair value less costs of disposal

of the property, plant and equipment is $1,120,000.

Value in use could not be determined separately for these two items.

Required

Calculate the impairment loss that would arise in the consolidated financial statements of Invest as a result of the impairment review of MH at 31 December 20 * 2 and show how the impairment loss would be allocated

On 31 December 201 Invest purchased all the shares of MH for $2m. The net fair value of the identifiable assets acquired and liabilities assumed of MH at that date was $1.8m. MH made a loss in the year ended 31 December 202 and at 31 December 202 the net assets of MH - based on fair values at 1 January 202 - were as follows: An impairment review on 31 December 202 indicated that the recoverable amount of MH at that date was $1.5m. The capitalised development expenditure has no ascertainable external market value and the current fair value less costs of disposal of the property, plant and equipment is $1,120,000. Value in use could not be determined separately for these two items. Required Calculate the impairment loss that would arise in the consolidated financial statements of Invest as a result of the impairment review of MH at 31 December 202 and show how the impairment loss would be allocated. On 31 December 201 Invest purchased all the shares of MH for $2m. The net fair value of the identifiable assets acquired and liabilities assumed of MH at that date was $1.8m. MH made a loss in the year ended 31 December 202 and at 31 December 202 the net assets of MH - based on fair values at 1 January 202 - were as follows: An impairment review on 31 December 202 indicated that the recoverable amount of MH at that date was $1.5m. The capitalised development expenditure has no ascertainable external market value and the current fair value less costs of disposal of the property, plant and equipment is $1,120,000. Value in use could not be determined separately for these two items. Required Calculate the impairment loss that would arise in the consolidated financial statements of Invest as a result of the impairment review of MH at 31 December 202 and show how the impairment loss would be allocated