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The carrying amount of a cash generating unit (CGU) is 3,000,000. This consists of goodwill 900,000, property, plant and equipment (PPE) 1,400,000 and development costs
The carrying amount of a cash generating unit (CGU) is 3,000,000. This consists of goodwill 900,000, property, plant and equipment (PPE) 1,400,000 and development costs 700,000. The CGU has a recoverable amount of only 1,200,000. The PPE has a selling price of 1,000,000 and costs to sell of 100,000. Compute the carrying amount of the development costs after the impairment charge
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