QUESTION 2 (Non-Current Assets held for sale: IAS40) (30 Marks) Parta Blossom Ltd has classified a group of assets and liabilities as a disposal group. The criteria for reclassification as a disposal group were met on 1 July 2019. The assets were measured immediately before classification in accordance with their respective accounting standards: Carrying Amount Recoverable Amount NS NS Investment property @ fair value Property plant and equipment 150 000 150 000 Inventory 50 000 NRV 50 000 Investment property cost model Goodwill Trade payables 10 000 60 000 60 000 50 000 30 000 The fair value less cost to sell of the disposal group on 1 July 2019 is NS230 000. Required: 2.1 Calculate the impairment loss and allocate to the disposal group. 2.2 Journalise the impairment loss Total 17 03 20 Part b At 31 August 2019, Enyan Ltd controlled a wholly owned subsidiary, Resource Ltd, whose only assets were land and buildings, which were all measured in accordance with IFRS. On 1 August 2019 Enyan Ltd published a statement stating that a binding offer for the sale of Resource Ltd had been made and accepted, and at that state, the sale was expected to be completed by 31 August 2019. The Non-current assets of Resource Ltd were measured at the lower of their carrying amount or fair value less costs to sell at 31 August 2019, based on the selling price in the binding offer. This measurement was in accordance with IFRS 5. However, Enyan Ltd did not classify the non-current assets of Resource Ltd as held for sale in the financial statements at 31 August 2019 because there were uncertainties regarding the negotiations with the buyer and a risk that the agreement would not be finalized. There was no disclosure of these uncertainties and the original agreement was finalized on 20 September 2019. Required; 2.3 Advise Enyan on how the above transaction should be correctly dealt with in its financial statements with reference to relevant IFRS. 10