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
November 2, 2021 at 1:36 pm #639774
ilievas
Participant
- Topics: 14
- Replies: 6
Can someone direct me about solving the following problem? I dont get why do we allocate the RA only to inventory and TR for example while excluding fully goodwill?
An impairment review was carried out and the recoverable amount of the cash generating unit was determined at $100m. Carrying amounts prior to impairment:
Goodwill 25m.
Intangibles 60m.
PPE 30m.
Inventory 15m.
TR 10m
The inventory and receivables are considered ti be included at their recoverable amounts.
What is the carrying amount of the intangibles once the impairment loss has been allocated?
A. 45m
B. 50m
C. 55m
D. 60m
November 7, 2021 at 9:05 am #640125
P2-D2
Keymaster
- Topics: 4
- Replies: 7235
Hi,
The impairment goes to goodwill first and then the other assets on a pro-rata basis. The inventory and receivables are already at their recoverable amount so not required to be impaired.
Thanks
Author
Posts

Viewing 2 posts - 1 through 2 (of 2 total)

You must be logged in to reply to this topic.