Glassrite Limited has an item of plant which has undergone an impairment review at year end (
Question:
Glassrite Limited has an item of plant which has undergone an impairment review at year end December At the review, the following information was produced.
Fair Value of plant: R
Costs of disposal: of Selling price.
Revenue and costs per annum for the remaining useful life are noted below:
Year Revenue R Costs R
A discount rate of is applicable. No estimated residual value for the plant
Required
Calculate the recoverable amount as at December
How would an entity know when to impair their assets?
Briefly explain including details on what is required to be done, how often, what steps are to be taken and what information is required and / or should be considered before determining whether an asset is impaired?
Discrete Time Signal Processing
ISBN: 978-0137549207
2nd Edition
Authors: Alan V. Oppenheim, Rolan W. Schafer