• 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

20% off ACCA & CIMA Books

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

CGU Question(Similar scenario to lecture video, but contradicts with BPP answer)

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › CGU Question(Similar scenario to lecture video, but contradicts with BPP answer)

  • This topic has 1 reply, 2 voices, and was last updated 6 years ago by P2-D2.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • May 22, 2019 at 10:37 pm #516929
    joelsm1
    Participant
    • Topics: 4
    • Replies: 10
    • ☆

    A cash generating unit comprises the following assets:

    $ 000
    Building 700
    Plant and equipment 200
    Goodwill 90
    Current assets 20
    ____
    1010
    One of the machine carried at $40000 is damaged and will have to be scrapped. The recoverable amount of the cash generating unit is estimated at $ 750000.

    What will be the carrying amount of the building when the impairement loss has been recognized?
    A)$597000
    B)$577000
    C)$594000
    D)$548000

    In your lecture video, I understand your reasoning for not further impairing P+E after removing the destroyed P+E. But in this question, BPP also includes the remaining P+E in the pro-rata impairment calculation along with Building, giving answer C. While following your method I got $570000.

    Can you please assist? Not sure if I may have gotten confused somewhere along.
    Thanks

    May 24, 2019 at 7:45 pm #517210
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7163
    • ☆☆☆☆☆

    Hi,

    If there is nothing specific in the question then the impairment is allocated against the category that has suffered the impairment. The example in the notes is more specific given the assets involved.

    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

  • osman-the-zephyr@ on MA Chapter 1 Questions Accounting for Management
  • adebusola on MA Chapter 1 Questions Accounting for Management
  • Sharith on Interest rate risk management (1) Part 5 – ACCA (AFM) lectures
  • Sharith on Interest rate risk management (1) Part 5 – ACCA (AFM) lectures
  • John Moffat on Discounted Cash Flow Further Aspects, Replacement – ACCA Financial Management (FM)

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