impairment

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June 11, 2019 at 3:39 pm #520217
geokcheng
Member
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Good day sir,

Practice question for chapter 7 – question 2.
Why the 25K excess was allocated between the engine 2 – 10K and tracks – 15K?
Is it due to engine is the fundamental to the continuing viability of the business?
June 12, 2019 at 1:21 pm #520298
P2-D2
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Hi,

The remaining impairment is allocated to the assets on a pro-rata basis, and this is what has been done in this question.

Thanks
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