A cash-generating unit was reviewed for impairment at 31 May 20X3 as required by IAS 36, Impairment of Assets. The impairment review revealed that the cash-generating unit has a value in use of $25 million and a net realizable value of $23 million.
The carrying values of the net assets of the cash-generating unit immediately prior to the impairment review were as follows:
The carrying values of the net assets of the cash-generating unit immediately prior to the impairment review were as follows:
$000
Goodwill...........................................5 000
Property, plant and equipment....................18 000
Net current assets..................................4 000
27 000
The review indicated that an item of plant (included in the above figure of $18 million) with a carrying value of $1 million had been severely damaged and was virtually worthless.
There was no other evidence of obvious impairment to specific assets.
What is the carrying value of the goodwill relating to the unit immediately after the results of the impairment review have been reflected in accordance with IAS 36?
A..................................$1 million
B..................................$2 million
C..................................$3 million
D..................................$4 million