Question
The company provided the data of PP&E in a cash-generating unit (CGU) as follows: Cost Accumulated Depreciation Equipment A $ 15,000 $ 8,000 Equipment B
The company provided the data of PP&E in a cash-generating unit (CGU) as follows:
|
| Cost | Accumulated Depreciation |
| Equipment A | $ 15,000 | $ 8,000 |
| Equipment B | 30,000 | 19,000 |
| Equipment C | 45,000 | 23,000 |
The units fair value less costs to sell was $25,000. The units future cash flows
was $32,000, and its present value was $28,000. The company adopted IFRS.
Required (11 marks):
- Prepare journal entries to record impairment.
- If the recoverable amount of Equipment C is $19,000, prepare journal entries to record impairment.
- If the recoverable amount of Equipment C is $24,000, prepare journal entries to record impairment.
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Managerial Accounting
Authors: John Wild, Ken Shaw
6th Edition
9781259726972
