QUESTION 2 (Non-Current Assets held for sale: IAS40) (30 Marks) Part a 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

N$ N$

Investment property @ fair value 60 000 -

Property plant and equipment 150 000 150 000

Inventory 50 000 NRV 50 000

Investment property cost model 50 000 60 000

Goodwill 30 000

Trade payables 10 000

The fair value less cost to sell of the disposal group on 1 July 2019 is N$230 000. Required:

2.1 Calculate the impairment loss and allocate to the disposal group. 17

2.2 Journalise the impairment loss 03

Total 20