• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

June 2025 ACCA Exam Results

Comments & Instant poll >>

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for June 2025 exams.
Get your discount code >>

CGU

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › CGU

  • This topic has 1 reply, 2 voices, and was last updated 4 years ago by P2-D2.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • June 14, 2021 at 2:33 pm #625255
    alawi sayed
    Participant
    • Topics: 301
    • Replies: 352
    • ☆☆☆☆

    Hello Sir,

    In your lecture for impairment of CGU you said not to allocate to PPE after deducting scrapped item but in the following question they did allocate some impairment after deducting the damaged machine,
    so how is that ,

    Thanks,

    ——————————————————————————————————————————

    A cash-generating unit comprises the following assets:
    $’000
    Building 700
    Plant and equipment 200
    Goodwill 90
    Current assets 20
    1,010
    One of the machines, carried at $40,000, is damaged and will have to be scrapped. The recoverable amount
    of the cash-generating unit is estimated at $750,000.
    What will be the carrying amount of the building after the impairment loss has been recognised?
    (to the nearest $’000)
    A $597,000
    B $577,000
    C $594,000
    D $548,000

    June 19, 2021 at 7:43 am #625766
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7172
    • ☆☆☆☆☆

    Hi,

    The two questions were different in that the one in the lecture notes had looked at all of the assets on that class of asset already, hence we did not need to allocate any more of the impairment.

    In this question, they have only looked at $40,000 worth of machinery in the plant & equipment category, they have not looked at any of the remaining assets within the category. Therefore any remaining impairment will need to be allocated to the assets.

    Thanks

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • AdityaSairam on Overcapitalisation and Overtrading – ACCA Financial Management (FM)
  • verweijlisa on Financial performance – Example 2 – ACCA Financial Reporting (FR)
  • John Moffat on Linear Programming – Spare capacity and Shadow prices – ACCA Performance Management (PM)
  • John Moffat on The Statement of Financial Position and Income Statement (part d)
  • Salexy on Linear Programming – Spare capacity and Shadow prices – ACCA Performance Management (PM)

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in