ABC Ltd conducted an impairment test of one of its cash generating units (CGU) at 30 June 20X0. The test determined that the recoverable amount of the entire CGU was $80,000. The carrying amounts of the assets of the entity at 30 June 20X0 were: Equipment (net of depreciation) Receivables Goodwill $63,000 15,000 22,000 Required Prepare the journal entry to account for the impairment of goodwill at 30 June 20X0.
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- The following information is available relating to a cash generating unit belonging to Bliss plc: £m Building 60 Plant and Equipment 12 Goodwill 20 Current Assets 40 132 Following an industrial accident, it has been determined that the recoverable amount of the cash generating unit to be £100m. The current assets are already at their recoverable amount. Determine the impairment loss relating to this Cash Generating Unit. Allocate the impairment loss to the cash generating unit, and show the value of each of the assets listed above once the impairment loss has been allocated.The following information is available for a Company's asset: Cost $5,350,000; Carrying amount (book value) $3,200,000; Undiscounted future cash flows 2,150,000, fair value or market value $2,600,000. Regarding this asset, the company would record a loss on impairment of OLO0.000 OBE00.000 OL 1000.000Diva Ltd has an item of equipment with a carrying amount of $110000 (cost $150000 less accumulated depreciation $40000). the following data has been obtained by Diva in relation to the asset; estimated fair value of the asset less costs of disposal - $90,000 present value of future cash flows expected to be derived from the asset $70000 To account for the impairment loss, the accountant for Diva is considering a number of accounting entries. In accordance with IAS 16 Property, Plant and Equipment and IAS 36 impairment of assets, which one of the following entries is made to recognise the impairment loss?
- Company A applies IFRS. The following information pertains to Company A's intangible assets: On December 31, Year 3, Company A determines the following data regarding one of its cash-generating units (CGUs): Total CGU Liabilities Other Assets Goodwill Carrying amount $90,000 ($160,000) $200,000 $50,000 Fair value minus cost to sell $80,000 Value in use $65,000 On January 1, Year 2, Company A purchased a restaurant franchise for $360,000. The franchise has an active market, and the company applies the revaluation model as its accounting policy regarding franchises and amortizes them using the straight-line method. The estimated useful life of the franchise is 20 years with no residual value. The company revalues the franchise at the end of each year. The fair values of the franchise at the end of Years 2 and 3 are $350,000 and $330,000 respectively. During Year 1, the company incurred the following costs in relation to an internally developed patent: research…Company A applies IFRS. The following information pertains to Company A's intangible assets: On December 31, Year 3, Company A determines the following data regarding one of its cash-generating units (CGUs): Total CGU Liabilities Other Assets Goodwill Carrying amount $90,000 ($160,000) $200,000 $50,000 Fair value minus cost to sell $80,000 Value in use $65,000 On January 1, Year 2, Company A purchased a restaurant franchise for $360,000. The franchise has an active market, and the company applies the revaluation model as its accounting policy regarding franchises and amortizes them using the straight-line method. The estimated useful life of the franchise is 20 years with no residual value. The company revalues the franchise at the end of each year. The fair values of the franchise at the end of Years 2 and 3 are $350,000 and $330,000 respectively. During Year 1, the company incurred the following costs in relation to an internally developed patent: research…An organisation's asset register shows a carrying amount of $145,600. The non-current asset account in the nominal ledger shows a carrying amount of $135,600. The difference could be due to a disposed asset not having been deducted from the asset register. Which one of the following could represent that asset? A Asset with disposal proceeds of $15,000 and a profit on disposal of $5,000 B Asset with disposal proceeds of $15,000 and a carrying amount of $5,000 C Asset with disposal proceeds of $15,000 and a loss on disposal of $5,000 D Asset with disposal proceeds of $5,000 and a carrying amount of $5,000
- PQ16.08 Equipment that cost $144,000 and on which $120,000 of accumulated depreciation has been recorded was disposed of for $36,000 cash. The entry to record this event would include ??5. During the end of the year, YGX Company presented the following information: Equipment Accumulated depreciation However, the equipment is found to be impaired due to obsolescence as well as physical damage. At year-end, the company has determined the following information related to the equipment: Undiscounted net cash inflows Fair value less cost of disposal Value in use or discounted net cash inflows a. 1,500,000 b. 2,000,000 9,000,000 3,500,000 What amount should be reported as impairment loss for the year? c. 500,000 d. 0 4,500,000 3,500,000 3,000,0007. A company purchased a POS cash register on January 1 for RM5,400. This register has a useful life of 10 years and a salvage value of RM400. What would be the depreciation expense for the second-year of its useful life using the double-declining-balance method? a. RM864 b. RM812 c. RM800 d. RM755 8. Which of the following is NOT an activity listed in the statement of cash flows? a. Investing Activities b. Financing Activities c. Operating Activities d. Funding Activities 9. Which of the following is an example of a deferral? a. Accruing year-end wages b. Recording prepaid rent c. Recognizing revenues earned but not yet recorded d. Recognizing expenses incurred but not yet recorded 10. Deciding whether to record a sale when the order for services is received or when the services are performed is an example of a a. recognition b. valuation issue. c. classification d. communication
- Natraj Limited recognized an impairment loss of OMR 200 against a cash-generating containing the following assets: Mine buildings OMR 500; Roads OMR 300; Crushing equipment OMR 700. The net carrying amount of the Roads after allocation of the impairment loss is: a- OMR 300 b- None of them c- OMR 100 d- OMR 260Extracts from Tom Ltd's Statement of financial positions are given below: At year- end At beginning of year £'000 £'000 Non-current assets 295 240 Accumulated depreciation 150 105 Net book value 145 135 Assuming there were no disposals within the year, which of the following statements is true? Select one: OA. During the year, the amount spent on the purchase of non-current assets was £295,000 and the depreciation charge for the year was £150,000. OB. During the year, the amount spent on the purchase of non-current assets was £55,000 and the depreciation charge for the year was £150,000. OC. During the year, the amount spent on the purchase of non-current asset purchases was £55,000 and the depreciation charge for the year was £45,000. OD. During the year, the amount spent on the purchase of non-current assets was £295,000 and the depreciation charge for the year was £45,000.ABC Ltd has determined that one of its cash-generating units (CGUs) has sustained an impairment loss of $50 000. The carrying amount of the assets within the CGU are as follows. Asset 1 Asset 2 Asset 3 Total $ 150 000 200 000 50 000 400 000 The estimated fair value less costs of disposal of Asset 2 is $190 000, which is greater than its value in use. Required In accordance with IAS 16 Property, Plant and Equipment and IAS 36 Impairment of Assets, calculate the amount of impairment loss allocated to the three assets, and the carrying amounts of the assets after the allocation. Prepare relevant journal entries. Show workings and calculations.