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impairment loss

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

  • This topic has 1 reply, 2 voices, and was last updated 8 years ago by MikeLittle.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • February 22, 2017 at 5:50 pm #373717
    firelion28
    Member
    • Topics: 159
    • Replies: 83
    • ☆☆☆

    hi mike

    it is mentioned that the an impairment loss may not reduce the carrying amount below the highest of
    fair value less costs to sell
    value in use
    zero

    in the follwing question
    multiplex acquired the steams days and the sofp shows the fair value of assets

    goodwill 200
    operating licence 1200
    property 300
    rail track 300
    two engines 1000
    __________
    3000
    __________

    the engine exploded and the value in use of business was 2000. the carrying amounts of property and rail track are based on value in use and engines are valued at net selling price

    when they are apportioning the loss, they apportion it below the fair values, but doesnt that contradict with the statement made before?

    February 22, 2017 at 6:58 pm #373729
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23327
    • ☆☆☆☆☆

    How is “fair value less costs to sell” the same as “fair value”?

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Viewing 2 posts - 1 through 2 (of 2 total)
  • The topic ‘impairment loss’ is closed to new replies.

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