QUESTION 2: HURON LTD

Huron Ltd has identified an indication of impairment and is conducting an impairment review. The carrying amount of cash-generating unit is as follows on 31 Dec, 2021:

Goodwill	900,000
Property	2,000,000
Plant and equipment	1,500,000
Computers	600,000
Patents	300,000
Net current assets (net realizable value)	450,000
	5,750,000

The whole of the company is considered to be a single cash-generating unit (CGU).

If a company continues its operations, it is estimated to receive 950,000 net cash-flows annually at the end of the year for the duration of next 4 years. The discount rate is calculated to be 7%.

Fair value less cost to sell for CGU is estimated to be 3,050,000.

The net realizable value of the property is 1,300,000 only.

For computers, only half of the value can be recovered. Net Current Assets are recovered in full.

Required

Calculate whether an impairment loss has occurred and if so, prepare a revised schedule for Venus Ltd as at 31 Dec 2018. Show your workings fully clearly showing impairment allocation and revised carrying values.