The following information relates to Lusi Limited on 31 December 2018 Notes Carrying Amount 400,000 Recorded...
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The following information relates to Lusi Limited on 31 December 2018 Notes Carrying Amount 400,000 Recorded at lower of cost and net realisable value 1,000,000 300,000 200,000 100,000 2,000,000 Asset Inventory Land Vehicles Patent Goodwill Total These assets have a combined value in use of $1,800,000 Required a b C d e Depreciated at 10% per annum Indefinite useful life Perform an impairment test to determine the impairment loss at 31 December 2018 Note treat the entire business as a CGU Determine how much of the impairment loss should be written off against goodwill Allocate the remaining impairment loss to other assets on a pro-rata basis How would your answer to (c) change if land had a recoverable amount of ff40,000? Prepare journal entries to journalise the impairment loss The following information relates to Lusi Limited on 31 December 2018 Notes Carrying Amount 400,000 Recorded at lower of cost and net realisable value 1,000,000 300,000 200,000 100,000 2,000,000 Asset Inventory Land Vehicles Patent Goodwill Total These assets have a combined value in use of $1,800,000 Required a b C d e Depreciated at 10% per annum Indefinite useful life Perform an impairment test to determine the impairment loss at 31 December 2018 Note treat the entire business as a CGU Determine how much of the impairment loss should be written off against goodwill Allocate the remaining impairment loss to other assets on a pro-rata basis How would your answer to (c) change if land had a recoverable amount of ff40,000? Prepare journal entries to journalise the impairment loss
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Related Book For
Managerial accounting
ISBN: 978-0471467854
1st edition
Authors: ramji balakrishnan, k. s i varamakrishnan, Geoffrey b. sprin
Posted Date:
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