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impairment of subisdiary’s asset in consolidation

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  • May 30, 2020 at 11:20 am
    impairment of subisdiary’s asset in consolidation 2
    sando
    Participant

    On 1 July 2017, the fair values of the assets of A Ltd (subsidiary) were equal to their carrying amount with the exception of an item of machinery. The machine had a carrying amount of Rs5 million and its recoverable amount was Rs3.5 million on 1 July 2017 and on that date the remaining useful life of the machine was 12 years.

    what is its treatment in the balance sheet and how are non-current assets affected?
    what this impairment loss is included during the calculation of the subsidiary’s fair value of identifiable net asset?

    June 4, 2020 at 10:41 am
    impairment of subisdiary’s asset in consolidation 3
    P2-D2
    Keymaster

    Hi,

    Have you attempted the question yet yourself? I’ll answer it once you’ve tried to answer it yourself as it is the best way to learn. I’m not here to just answer an entire question.

    Thanks

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