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The following information relates to an item of plant in Entity A. Its carrying amount in the statement of the financial position is $300,000. Entity
The following information relates to an item of plant in Entity A.
- Its carrying amount in the statement of the financial position is $300,000.
- Entity A has received an offer of $270,000 from Entity B in Taiwan interested in buying the plant.
- The present value of the estimated cash flows from continued use of the plant is $260,000.
- The estimated cost of shipping the plant to Taiwan is $5,000.
REQUIRED:
According to accounting standards, measure the impairment loss to be recognised on the plant.
ANSWER:
The impairment loss = $
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