An entity is reviewing its business segments for impairment. The carrying value of its net assets is
Question:
An entity is reviewing its business segments for impairment. The carrying value of its net assets is EUR 20m. Management have produced two computations for the value-in use of the business segment. The first value (EUR 18m) excludes the benefits to be derived from a future reorganisation, but the second value (EUR 22m) includes the benefits to be derived from the proposed future reorganisation. There is not an active market for the sale of the business segment.
Explain whether the business segment is impaired.
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Impairment refers to a decrease in an assets recoverable value that is greater than its carrying val...View the full answer
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Related Book For 
Advanced Financial Accounting An International Approach
ISBN: 9780273712749
1st Edition
Authors: Jagdish Kothari, Elisabetta Barone
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