Question
Tinud has identified an impairment loss of $41m for one of its cash generating units. The carrying amount of the unit's net assets was
Tinud has identified an impairment loss of $41m for one of its cash generating units. The carrying amount of the unit's net assets was $150m, whereas the unit's recoverable amount was only $109m. The draft values of the net assets of the unit are as follows: $m . . . . . . Goodwill Property Machinery Vehicles Patents 14 Net monetary assets 19 13 20 49 35 150 The net selling price of the unit's assets were insignificant except for the property, which had a market value of $35m. The net monetary assets will be realised in full. Required: How is the impairment loss allocated to the assets within the cash generating unit?
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