Required -

1

a) Calculate the amount of impairment loss (if any) for the building and CGU under

the assumption that Faris is:

i) a publicly accountable entity. Allocate the impairment loss (if any) to the

assets of the CGU.

2

ii) a private company subject to ASPE. Just calculate the impairment loss.

b) Assume that on December 31, 20x6, the recoverable amount of the building is

estimated to be $2,700,000. Calculate the amount of impairment loss reversal on

the building at December 31, 20x6. Assume the company is a publicly

accountable entity.