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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Impairment Loss
A Cash Generating unit comprises the following:
$M
Building 30
Plant and Equipment 6
Goodwill 10
Current Assets 20
—-
66
===
Impairment review has estimated the recoverable amount of CGU to $50 M.
I’m having troubles in calculating the pro-rata part.
I want to know this simple question first before going for difficult ones.
After impairing goodwill down to zero, there is a further 6 more to impair and that is spread pro-rata amidst the building and the PPE
Building takes 30/36 x 6 = 5 and
PPE takes 6/36 x 6 = 1
So the assets after impairment are:
Building 25
PPE 5
CA 20
Total 50
OK now?