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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Impairment Chp 4
In Chapter 4 notes it states that an asset/ cgu is said to be impaired only of its CV falls below its recoverable amount.
But in Ex 5 from the same chapter, CV is $ 40mn, recoverable amount is $ 38 mn and impairment is calcculated as CV – RA = $ 2 mn.
But the CV has not fallen bellow the RA, then how can the CGU be impaired?
Hi,
It is just a typing error, and one I though that I’d corrected but clearly haven’t, hope it didn’t cause too much confusion.
An asset/CGU is impaired if the CV is greater than the the recoverable amount.
Thanks