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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Impairment Test
why the impairment is accounted for differently in June 2013 Ques 1 note:3 and Dec 2012 Ques 1 note:3 H
Hi,
It is due to the specific information given in each of the questions. In Dec 2012 it states that the recoverable amount has been determined without consideration of the liabilities. When we therefore use the carrying value of the subsidiary we should also not include the liabilities to make to comparable like for like.
Int he June 2013 question we were given the recoverable value of the net assets, so will compare to the carrying value of the subsidiary net assets.
Hope this helps.
Thanks
thanks P2-D2 for the help 🙂
You’re welcome. Keep up the hard work and good luck with exam.