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Impairment test in 2012 December question 1

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Impairment test in 2012 December question 1

  • This topic has 5 replies, 2 voices, and was last updated 10 years ago by AvatarMikeLittle.
Viewing 6 posts - 1 through 6 (of 6 total)
  • Author
    Posts
  • November 14, 2015 at 6:59 am #282252
    Avatarteeboyz
    Member
    • Topics: 19
    • Replies: 52
    • ☆☆

    Hello again Mike

    May i ask why is the net assets taken for calculating the impairment is from the “Total Asset”?I’ve done other past year but others using “Total Equity” to do the calculation

    November 14, 2015 at 7:39 am #282264
    AvatarMikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23368
    • ☆☆☆☆☆

    Because, from memory, that’s what the question specified!

    November 14, 2015 at 8:47 am #282276
    Avatarteeboyz
    Member
    • Topics: 19
    • Replies: 52
    • ☆☆

    It’s because the question says..Impairment test on cash generating unit , without liabilities…..

    CGU is the keyword?

    November 14, 2015 at 3:37 pm #282347
    AvatarMikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23368
    • ☆☆☆☆☆

    No, the key words are “without liabilities” ie just the assets

    November 14, 2015 at 3:48 pm #282350
    Avatarteeboyz
    Member
    • Topics: 19
    • Replies: 52
    • ☆☆

    Thank you very much Mike!

    November 14, 2015 at 3:54 pm #282355
    AvatarMikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23368
    • ☆☆☆☆☆

    You’re welcome

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