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In BPP exam kit –
Page no. 28 – question no. 36 –
Relates to financial position of Sandown Co.My question here – they inclued only 6 months of depreciation here ? why ? what abot the 1st oct 18-31st March 19 , those 6 months where why not included?
Hi,
The impairment took place on 1 April X9 which is six months into the year, hence the six months of depreciation.
Thanks
so what about the period prior to april ? no amortization/depreciation would be charged to it ?
It would have been charged but the question asks for the carrying value at the reporting date. Remember that there has been an impairment, so the carrying value at the reporting date will be the impaired value less the depreciation charged since that date.
Any depreciation charged prior to this is not relevant to calculating the carrying value at the reporting date.
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