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
Ask the Tutor ACCA FR
impairment
Hi,
Have you watched the video on impairments? If you have you will see what we do when we pro rata the impairment.
Thanks
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