FRIAS - 36 Impairment Losses Calculation

C.V of Assets: Building 900 P&E 300 Inventory 70 Other C.A 130 Goodwill 40 The C.V value of CGU is 1,440 while the Recoverable Value is 1300. MCQs. 1. What is the C.V of Inventory after adjusting Impairment loss? • 64,000 • 70,000 • NIL • 65,000 2. What is the C.V of building after adjusting Impairment loss? • 900,000 • 836,000 • 795,000 • 825,000 for question 1 the correct option is NIL, so if we can not pass losses to Inventory then why we include it in CGU C.V (1,440) for Question 2 the correct answer is D while i calculated as : C.V of CGU = 1440 Recov. Value = 1300 Loss will be (1,440 - 1,300) = 140 C.V of Goodwill = 40 now after adjusting first against Goodwill the Remaining loss will be (140 - 40 ) = 100 now against building : (900/1400)x100 = 64.28 C.V of Building after adjusting Loss = (900-64.2) = 835.71 Explain this please how they calculated. Thanks