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June 16, 2019 at 6:22 am
Hello can someone tell me why the goodwill is impaired at full amount?
February 25, 2019 at 4:54 pm
I actually allocated part of the 3.1 to the building (1.86) and part to the remaining P and E (1.24). Was I wrong?
March 3, 2019 at 7:39 am
Chris says the P&E has already been impaired (by the 1.2m scrap). So the excess impairment of 3.1m will not be allocated to it anymore. Remember? The impairment hierarchy is specific assets > goodwill > remaining assets on a pro-rata basis. The remaining assets are those assets that have not been specifically impaired at first, and P&E as a whole is considered as one single asset for impairment purposes, so once you have written off the impairment that is attributable to the asset, you’ll not need to write it off further.
April 8, 2019 at 8:51 am
I may well be wrong but I don’t feel that is correct. As the question does not specifically state that the only impairment to Plant and Equipment was the specific impairment of 1.2m I think that the remaining 3.1m should be apportioned across the remaining unimpaired Property, Plant and Equipment.
This doesn’t break the hierarchy as you are:
-impairing first specific assets (the amount destroyed) -impairing goodwill (in full where applicable) -apportioning the remainder over any remaining assets not already impaired (excl. cash and cash equivalents)
It would be great if we could get a response from Chris as the above is how I was taught to do it in F7 (by open tuition) and it would be great to get some clarity.
December 2, 2018 at 10:15 pm
Haha you forgot to play around with the video!
Made me laugh a little, which helps while revising for Thursday!
Thanks for the videos!
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