QUESTION 2: PART 1 Storm Ltd has identified an indication of impairment and is conducting an impairment review. The carrying amounts of cash generating unit is as follows on 31 Mar, 2020: Goodwill 600,000 Property 900,000 Plant and equipment 500,000 Computers 400,000 Patents 100,000 Net current assets 400,000 2,900,000 The whole of the company is considered to be a single cash-generating unit (CGU). Fair value less cost to sell for CGU is estimated to be 1,350,000. If a company continues its operations, it is estimated to receive 419,250 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%. The net current assets will be recovered in full and the net realizable value of the property is 620,000. Patents have no resale value and are considered worthless now. Note 1: Discount and Annuity Table Discount rate at 7% Annuity at 7% Y1 0.935 0.935 Y2 0.873 1.808 Y3 0.816 2.624 Y4 0.763 3.387 Y5 0.713 4.1 Required Calculate whether an impairment loss has occurred and, if so, prepare a revised schedule for Storm Ltd as at 31 March 2020. Explain your workings fully clearly showing impairment allocation and revised carrying values. (20 marks)