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impairment

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › impairment

  • This topic has 1 reply, 2 voices, and was last updated 7 years ago by AvatarP2-D2.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • December 21, 2018 at 1:49 pm #492434
    Avatarhadiraza982
    Member
    • Topics: 14
    • Replies: 10
    • ☆

    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

    December 24, 2018 at 9:48 pm #492638
    AvatarP2-D2
    Keymaster
    • Topics: 4
    • Replies: 7235
    • ☆☆☆☆☆

    Hi,

    Have you watched the video on impairments? If you have you will see what we do when we pro rata the impairment.

    Thanks

  • Author
    Posts
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