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Test for Impairment ASPE Please help on doing a test for impairment for capital assets. I am unsure how to do it. Given the recent
Test for Impairment ASPE
Please help on doing a test for impairment for capital assets. I am unsure how to do it.
- Given the recent poor financial performance, Allan decided to conduct an asset impairment test. The controller estimated that the following net cash flows are expected to be generated from the property, plant, and equipment (a reasonable discount rate is 8%): (Impairment P,P,& E)
- Extra info: The fair value of the capital assets, less costs to sell, is estimated to be $1.3 million. The net book value of the property, plant, and equipment was $1,627,900 prior to Allan recording an impairment loss of $327,900.
Year: | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
Cash Flow: | 350,000 | 350,000 | 450,000 | 450,000 | 300,000 | 300,000 | 250,000 |
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