On 1 January 2000, Cloud Co suffers a failure of its technology. The following carrying values, were recorded in the books immediately prior to the impairment:
$m
Goodwill 20
Technology 5
Brands 10
Land 50
Buildings 30
Other net assets 40
The recoverable value of the unit is estimated at $85 million. The technology is worthless, following its complete failure. The other net assets include inventory, receivables and payables. It is considered that the book value of other net assets is a reasonable representation of its net realisable value.
Required:-
Show the impact of the impairment on 1 January.
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