Gandalf Ltd has a year end of 31 December. On 30 October 2020 it classified an...

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Gandalf Ltd has a year end of 31 December. On 30 October 2020 it classified an item of plant as held for sale. At that date the plant had a carrying amount of £13,200 and had been accounted for according to the cost model. Its fair value was estimated at £11,100 and the costs of disposal at £500. On 15 December 2020 the plant was sold for £10,500. In accordance with IFRS 5, Non-current Assets Held for Sale and Discontinued Operations what amounts should be recognised as impairment loss and loss on disposal in profit or loss for the year to 31 December 2020? Gandalf Ltd has a year end of 31 December. On 30 October 2020 it classified an item of plant as held for sale. At that date the plant had a carrying amount of £13,200 and had been accounted for according to the cost model. Its fair value was estimated at £11,100 and the costs of disposal at £500. On 15 December 2020 the plant was sold for £10,500. In accordance with IFRS 5, Non-current Assets Held for Sale and Discontinued Operations what amounts should be recognised as impairment loss and loss on disposal in profit or loss for the year to 31 December 2020?

Answer rating: 100% (QA)

As per IFRS 5 When Non current asset was classified as held for sale then it should be recognised a... View the full answer