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Show workings please thanks iii) There was an explosion in a factory Wall Ltd. The carrying amounts of its assets were as follows: Goodwill Property
Show workings please thanks
iii) There was an explosion in a factory Wall Ltd. The carrying amounts of its assets were as follows: Goodwill Property Machinery Vehicles Patents Net monetary assets $ million 13 20 49 35 14 19 150 NOTES 1 The factory operates as a cash generating unit. 2. An impairment review reveals the following: a) Fair value less costs to sell - $ 80 million b) Value in use - $ 85 million 3. Half of the machines have been blown to pieces but the other half can be sold for at least their carrying amount. 4. The book values of the net monetary assets is considered as reasonable representation of its net realizable value. REQUIRED Calculate the revised asset value of the cash generating unit showing how the mpairment loss is allocated to the assets within the cash-generating unit. [11 Marks)Step by Step Solution
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