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Property, Plant and Equipment (PPE)​​​​​180,000 ​​​​​​​​​360,000 An annual impairment review is required as the cash-generating unit contains goodwill The most recent review assesses its recoverable amoun

Property, Plant and Equipment (PPE)​​​​​180,000 ​​​​​​​​​360,000 An annual impairment review is required as the cash-generating unit contains goodwill The most recent review assesses its recoverable amoun

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A) A cash generation unit holds the following assets:

GH₵

Goodwill ​​​​​​​​60,000​

Patent right​​​​​​​​120,000​

Property, Plant and Equipment (PPE)​​​​​180,000

​​​​​​​​​360,000

An annual impairment review is required as the cash-generating unit contains goodwill

The most recent review assesses its recoverable amount to be GH₵ 270,000

 

Required:

Determine how the impairment loss will be allocated​​​​​​​​​​​

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