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Allocation of Impairment Loss

This topic has 1 reply, 2 voices, and was last updated 8 years ago by MikeLittle.

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July 17, 2016 at 3:44 am #326113
herman96
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Hi,
Here’s my question:
What is the reason current assests in the CGU are not subject to impairment? Any simple example of with value can explain the principle(s) held behind?
July 17, 2016 at 6:14 am #326116
MikeLittle
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Because current assets are always valued at the lower of cost and net realisable value and that, if you think about it, satisfies the requirement of recoverable amount
OK?
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