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for june 2013 paper, the impairment testing is carrying value of net assets + goodwill less recoverable amount. which carrying value do you take? is it the net assets from the SOFP ( in the question). in this paper they took the net assets from the net assets calculations.
whereas in Minny Dec 12, they took the net assets directly from the SOFP(in the question) plus any increase in land + goodwill.? less recoverable amount to get the impairment loss.
i am confused
Karen, “there are many ways to skin a cat”
Does it not depend upon the date? If the impairment is to take place at the take-over date, then net assets will need to be calculated to arrive at the net assets at date of acquisition
If impairment is taking place at the year end, then net assets will be those from within the question
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