Diva 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?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Diva 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?

 

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