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ABC Ltd has determined that one of its cash-generating units (CGUs) has sustained an impairment loss...

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 1 150 000

Asset 2 200 000

Asset 3 50 000

Total 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.

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ekkarill92 answered 10 months ago
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