Question

A cash-generating unit comprises the following assets: $'000 Building 700 Plant and equipment 200 Goodwill 90 Current assets 20 1,010 One of the machines, carried at $40,000, is damaged and will have to be scrapped. The recoverable amount of the cash-generating unit is estimated at $750,000. What will be the carrying amount of the building after the impairment loss has been recognised? (to the nearest $'000) >>>>> Specific impairment is 40000. Remaining impairment is 220 so we allocate 90 to the Good will which leaves us with 130 impairment that needs to be allocated on a pro rata basis on the remaining assets. My question is why do we not consider the current assets when allocating them on a pro-rata basis? The answer only allocates it to the buildings and remaining carrying value of Plant.