Consider the following information relating to five different items of plant and equipment at the reporting date.

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1. Calculate the recoverable amount for each of the five items of plant and equipment.

2. Assuming plant and equipment is carried under the cost model, determine the amount of any impairment adjustment necessary.

3. Assuming plant and equipment is carried under the revaluation model, determine the amount of any revaluation adjustment necessary.

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Financial Reporting

ISBN: 9780730396413

4th Edition

Authors: Janice Loftus, Ken Leo, Sorin Daniliuc, Belinda Luke, Hong Nee Ang, Mike Bradbury, Dean Hanlon, Noel Boys, Karyn Byrnes

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Question Posted: Apr 06, 2024 01:01 AM

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Consider the following information relating to five different items of plant and equipment at the reporting date.

Question:

Asset Carrying amount $ Fair value $ Costs of disposal Value in use $ $ ABCDE 200 000 210 000 6.000 220 000 100 000 90 000 2000 96 000 160 000 170 000 4 000 164 000 400 000 380 000 10 000 440 000 240 000 240 000 6 000 230 000

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1 Recoverable amount RA higher of FV less costs of disposal and value in use Asset A 220 000 higher ...View the full answer

Financial Reporting

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