On 31 March 2020 Precision Company Limited had the following tangible and intangible non-current assets: Shs...
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On 31 March 2020 Precision Company Limited had the following tangible and intangible non-current assets: Shs '000" Property, plant and equipment 1,950 Goodwill 400 Other intangible assets 900 3,250 On 31 March 2021 indicated that the recoverable amount of Precision Company Limited assets was Shs 2,250,000. The current fair value less cost to sell of the Property, Plant and Equipment is Shs 1,450,000. Value in use could not be determined separately for the two assets. Required: Calculate the impairment loss that would arise in the financial statement of Precision Company Limited at 31 March 2021 and show how the impairment will be allocated. (10 marks) On 31 March 2020 Precision Company Limited had the following tangible and intangible non-current assets: Shs '000" Property, plant and equipment 1,950 Goodwill 400 Other intangible assets 900 3,250 On 31 March 2021 indicated that the recoverable amount of Precision Company Limited assets was Shs 2,250,000. The current fair value less cost to sell of the Property, Plant and Equipment is Shs 1,450,000. Value in use could not be determined separately for the two assets. Required: Calculate the impairment loss that would arise in the financial statement of Precision Company Limited at 31 March 2021 and show how the impairment will be allocated. (10 marks) On 31 March 2020 Precision Company Limited had the following tangible and intangible non-current assets: Shs '000" Property, plant and equipment 1,950 Goodwill 400 Other intangible assets 900 3,250 On 31 March 2021 indicated that the recoverable amount of Precision Company Limited assets was Shs 2,250,000. The current fair value less cost to sell of the Property, Plant and Equipment is Shs 1,450,000. Value in use could not be determined separately for the two assets. Required: Calculate the impairment loss that would arise in the financial statement of Precision Company Limited at 31 March 2021 and show how the impairment will be allocated. (10 marks) On 31 March 2020 Precision Company Limited had the following tangible and intangible non-current assets: Shs '000" Property, plant and equipment 1,950 Goodwill 400 Other intangible assets 900 3,250 On 31 March 2021 indicated that the recoverable amount of Precision Company Limited assets was Shs 2,250,000. The current fair value less cost to sell of the Property, Plant and Equipment is Shs 1,450,000. Value in use could not be determined separately for the two assets. Required: Calculate the impairment loss that would arise in the financial statement of Precision Company Limited at 31 March 2021 and show how the impairment will be allocated. (10 marks)
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Related Book For
Intermediate Accounting
ISBN: 978-0071339476
Volume 1, 6th Edition
Authors: Beechy Thomas, Conrod Joan, Farrell Elizabeth, McLeod-Dick I
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