• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

Congratulations to Jamil from Pakistan and Jeeva from Malaysia - Global Prize winners!
see all ACCA December 2022 Genius Hunt Competition winners >>

Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>

why impairment loss is not allocated to the current assets

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › why impairment loss is not allocated to the current assets

  • This topic has 3 replies, 3 voices, and was last updated 2 days ago by xyzc.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • December 16, 2022 at 1:59 pm #674763
    xyzc
    Participant
    • Topics: 350
    • Replies: 124
    • ☆☆☆

    A cash-generating unit comprises the following assets:
    Building 700000
    Plant and equipment 200000
    Goodwill 90000
    Current assets 20000
    1010000
    One of the machines carried at 40000 is damaged and will have to be scrapped. The recoverable amount of the cash-generating unit is estimated at 750000.
    What will be the carrying amount of the building after the impairment loss has been recognised?
    (to the nearest ‘000)
    In this question why the impairment loss has been allocated to the remainder of the plant and equipment after 40000 has been deducted from the plant and equipment because in the example in the notes on cash generating unit the impairment loss has not been allocated to the remainder of the plant and equipment after deducting the plant and equipment destroyed by fire.
    Also why impairment loss is not allocated to the current assets in this question whilst it is not mentioned in this question that they are at realisable value whereas impairment loss was not allocated to cash and receivables in the example in the notes because they were at realisable value.

    December 29, 2022 at 8:51 am #675167
    syntaxerror
    Participant
    • Topics: 6
    • Replies: 6
    • ☆

    because current assets are already recorded at fair value,duh!

    December 30, 2022 at 9:48 am #675228
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 6451
    • ☆☆☆☆☆

    IAS 36 does not apply to assets held under IAS 2 (inventory) or held under IAS 39 (receivables). Thanks.

    January 28, 2023 at 8:45 am #677496
    xyzc
    Participant
    • Topics: 350
    • Replies: 124
    • ☆☆☆

    In this question why the impairment loss has been allocated to the remainder of the plant and equipment after 40000 has been deducted from the plant and equipment because in the example in the notes on cash generating unit the impairment loss has not been allocated to the remainder of the plant and equipment after deducting the plant and equipment destroyed by fire

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

ACCA News:

 

ACCA My Exam Performance for non-variant Applied Skills exams is available NOW

NEW! Download the ACCA Pass Guide

FREE Verifiable CPD for ACCA Members

ACCA mock exams and debrief videos

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

Donate

If you have benefited from OpenTuition please donate.

ACCA CBE 2023 Exams

Instant Poll * How was your exam, and what was the result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Specially for OpenTuition students

20% off BPP Books

Get BPP Discount Code

Latest comments

  • cBarsoum on The Stages of an Audit – Appointment – ACCA Audit and Assurance (AA)
  • John Moffat on Revaluation Reserve – ACCA Financial Accounting (FA) lectures
  • John Moffat on Revaluation Reserve – ACCA Financial Accounting (FA) lectures
  • CHICCO.J on ACCA AB Chapter 1 – The nature and structure of organisations – Questions
  • Joanne94 on Irrecoverable Debts and Allowances Example 3 – ACCA Financial Accounting (FA) lectures

Copyright © 2023 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in


We use cookies to show you relevant advertising, find out more: Privacy Policy · Cookie Policy