Question
The carrying amount of a cash-generating unit (CGU) consists of the following. $ Machinery 800000 Plant 1200000 Land 2000000 Goodwill 800000. It has been determined
The carrying amount of a cash-generating unit (CGU) consists of the following. $ Machinery 800000 Plant 1200000 Land 2000000 Goodwill 800000. It has been determined that the recoverable amount of the CGU is $3600000. It is not possible to estimate the recoverable amounts of the individual assets within the CGU. Required In accordance with IAS 16 Property, Plant and Equipment and IAS 36 Impairment of Assets, calculate the amount of impairment loss allocated to the assets of the CGU, and the carrying amounts of the assets after the allocation. Prepare relevant journal entries. Show workings and calclations.
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