Give explanation also. Sebb Co runs a unit that suffers a massive drop in income due to

Give explanation also.

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Sebb Co runs a unit that suffers a massive drop in income due to the failure of its technology on 1 January 20X8. The following carrying amounts were recorded in the books immediately prior to the impairment: Goodwill Technology Brands Land Buildings Other net assets Sm 20 5 10 50 30 40 The recoverable value of the unit is estimated at $85 million. The technology is worthless, following its complete failure. The other net assets include inventory and receivables. It is considered that the carrying amount of other net assets is a reasonable representation of their net realisable value. Show the impact of the impairment on 1 January 20X8. Sebb Co runs a unit that suffers a massive drop in income due to the failure of its technology on 1 January 20X8. The following carrying amounts were recorded in the books immediately prior to the impairment: Goodwill Technology Brands Land Buildings Other net assets Sm 20 5 10 50 30 40 The recoverable value of the unit is estimated at $85 million. The technology is worthless, following its complete failure. The other net assets include inventory and receivables. It is considered that the carrying amount of other net assets is a reasonable representation of their net realisable value. Show the impact of the impairment on 1 January 20X8.

Answer rating: 100% (QA)

Impairment occurs when the carrying amount of an asset or a cashgenerating unit exceeds its recoverable amount In this case Sebb Cos technology is now ... View the full answer