OpenTuition | ACCA | CIMA
Free ACCA and CIMA on line courses | Free ACCA, CIMA, FIA Notes, Lectures, Tests and Forums
Spread the word
If you have benefited from our materials, please spread the word so more students can benefit.
To help us keep materials up to do and add new content you can also donate
August 13, 2020 at 9:49 pm
Thank you, it’s amazing!
August 4, 2020 at 12:00 am
There was no reply to this previously and I have the same question:
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?
June 7, 2020 at 5:06 pm
Is the impairment review done on the basis of prudence concept?
August 28, 2019 at 5:01 pm
What if the Sub ownership was 80%? Shall we allocate impairment to NCI also?
June 16, 2019 at 6:22 am
can someone tell me why the goodwill is impaired at full amount?
February 25, 2019 at 4:54 pm
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!
You must be logged in to post a comment.