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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › impairment
Hi,
i am doing impairment question in BPP rev kit and cannot undertsand pro rota
Question ask
cash generating unit comprises the following Assets:
$000
Building 700
Plant and equipment 200
Good Will 90
Current Assets 20
Total 1,010
one of the machine carried at $40,000, is damaged and will have to scrapped.The recoverable amount of the cash generating unit is at $750,000
What will be the carrying amount of the building when the impairment loss has been recognised.
i do understand the imapairment loss recognisedis $130,000 but dont understand how that pro rota into building and plant.
please help to pro rota that:
many thanks
Hi,
Have you watched the video on impairments? If you have you will see what we do when we pro rata the impairment.
Thanks