Formula: Subtract; Cell Referencing

Using Excel to Account for Impairment Losses under IFRS

PROBLEM

Clark Properties Ltd$.$ is a publicly listed company following

IFRS. The company owns land, information of which is

provided here as of December $31,2023.$

Due to an economic rebound in the area, by the end of the

following year, the land had increased in value, as presented

here.

Value in use of land

$ $570,000$

FV of land less costs to sell

$505,000$

Student Work Area

Required: Provide input into cells shaded in yellow in this template. Input the

required mathematical formulas or functions with cell references to the Problem area

or work area as indicated.

a$.$ Using the rational entity impairment model, prepare the journal entry required,

if any, to record the impairment loss.

b$.$ Prepare the journal entry required, if any, to record the increase in its

recoverable amount.