The carrying amount of its assets were as follows: Assets Goodwill ,000 200 Patents 300 500...

 

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The carrying amount of its assets were as follows: Assets Goodwill £,000 200 Patents 300 500 400 Machines Computers Buildings 1,000 2,400 Factory operated as CGU. Impairment review reveals that net selling price of a factory is £1,600,000 and value in use is £1,300,000. Buildings can be sold for £1,200,000 at current market price. As for Computers, due to change in technology, it is considered worthless now. Requirement: How should the impairment loss be allocated to the assets? The carrying amount of its assets were as follows: Assets Goodwill £,000 200 Patents 300 500 400 Machines Computers Buildings 1,000 2,400 Factory operated as CGU. Impairment review reveals that net selling price of a factory is £1,600,000 and value in use is £1,300,000. Buildings can be sold for £1,200,000 at current market price. As for Computers, due to change in technology, it is considered worthless now. Requirement: How should the impairment loss be allocated to the assets?

Answer rating: 100% (QA)

Allocation of Impairment Loss Determination of Impairment Loss SNo Particulars Amo... View the full answer