Ermon Company determined that its electronics division is a cash generating unit. The entity calculated the value in use of the division at P8,000,000. The carrying amounts of the assets are: Building P5,000,000; Equipment - P3,000,000; and Inventory - P2,000,000. The entity also determined that the fair value less cost of disposal of the building is P4,500,000. What is the impairment loss to be allocated to the equipment? A. 1,000,000 B. 900,000 C. 600,000 D. 400,000
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- ABC Co. has a division that is considered to be a cash-generating unit for purposes of IAS 36, impairment of assets. The recoverable amount of this cash-generating unit is $130 000 at 31 December 2014. The carrying amount of the cash-generating unit is $181 000 at 31 December 2014, constituted by the following individual carrying amounts as at this date: Goodwill (purchased goodwill): 20 000 Equipment (measured under the cost model): 60 000 |Investment property (measured under the cost 81 000 model: Inventory 20 000 The recoverable amounts at 31 December 2014 for the goodwill and investment property could not be estimated on an individual basis, but the recoverable amount for equipment was estimated to be $40 000. In accordance with IAS 2 the net realizable value of the inventory was $15 000. Required: Calculate whether the cash-generating unit is impaired and compute the impairment loss if there's any.Doc Company has determined that its electronics division is a cash generating unit. The entity calculated the value in use of the division to be P8,000,000. The assets of the cash generating unit at carrying amount are as follows: Building Equipment Inventory 5,000,000 3,000,000 2,000,000 Doc Company has also determined that the fair value less cost to sell of the building is P4,500,000. What is the impairment loss to be allocated to the equipment?Factor Company’s cash generating unit has been assessed for impairment and it has been determined that the unit has incurred an impairment loss of P240,000. The carrying amounts of the assets were as follows: Building P6,000,000; Land P3,500,000; Equipment P2,000,000; Vehicles P2,500,000. The cash generating unit has not recorded goodwill. If the fair value less cost to sell of the building is P5,960,000, what amount of impairment should be allocated to the equipment?
- ABC has determined that one of its cash generating units (CGU) is impaired. The assets of the CGU at their book value are: Land – 4,000,000; Factory – 1,200,000; Machinery and Equipment – 1,800,000. The value in use of the cash generating unit is P5,500,000. The impairment loss allocated to Machinery and Equipment is? (do not round off the percentage, round off your final answer to the nearest peso)Silver Company operates a production line which is treated as a cash generating unit for impairment review purposes. At year-end, the carrying amounts of the noncurrent assets are as follows: 1,100,000 Goodwill Machinery 2,200,000 The value in use of the production line is estimated at P2,700,000 at this time. 7. What is the revised carrying amount of goodwill after recognition of impairment? a. 1,100,000 b. 900,000 C. d. 500,000 800,000 8. What is the revised carrying amount of machinery after recognition of impairment? a. 2,200,000 b. 1,800,000 c. 1,600,000 d. 1,900,000Impairment is defined as a reduction in the value of a company asset, whether fixed or intangible which decline the asset's quality, quantity, or market value. (a) The carrying amount of a machinery is RM525,000. This consists of goodwill of RM75,000, development costs of RM150,000 and machinery of RM300,000. The machinery has a recoverable amount of RM330,000. Calculate the carrying amount of the machinery after the impairment loss has been allocated. (b) Syarikat Alfa has a year-end of 31 December and operates a factory which makes computer chips for mobile phones. It purchased a machine on 1 July 2016 for RM80,000 which had a useful life of ten years and is depreciated on a straight-line basis, time apportioned in the years of acquisition and disposal. The machine was revalued to RM81,000 on 1 July 2017. There was no change to its useful life at that date. A fire at the factory on 1 October 2019…
- Constructor Limited estimated an impairment loss of OMR 5000 against its single cash-generating unit. The company had the following assets: Headquarters Building OMR 10000; Construction Plant OMR 6000; Equipment OMR 4000. The allocation of the impairment loss to the Equipment shall be; OMR 1500 OMR 2000 OMR 1000 OMR 3000Impairment is defined as a reduction in the value of a company asset, whether fixed or intangible which decline the asset's quality, quantity, or market value. (a) The carrying amount of a machinery is RM525,000. This consists of goodwill of RM75,000, development costs of RM150,000 and machinery of RM300,000. The machinery has a recoverable amount of RM330,000. Calculate the carrying amount of the machinery after the impairment loss has been allocated.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.
- 8. ABC has determined that one of its cash generating units (CGU) is impaired. The assets of the CGU at their book value are: Land – 4,000,000; Factory – 1,200,000; Machinery and Equipment – 1,800,000. The value in use of the cash generating unit is P5,500,000. The factory’s fair value is P1,000,000. The impairment loss allocated to Machinery and Equipment is? (do not round off the percentage, round off your final answer to the nearest peso)Toro Co. has equipment with a carrying amount of $700,000. The value-in-use of the equipment is $705,000, and its fair value less costs of disposal is $590,000. The equipment is expected to be used in operations in the future. What amount (if any) should Toro report as an impairment to its equipment?Joy Corporation decided to dispose of an item of plant that is carried in its records at a cost of P450,000, with accumulated depreciation of P80,000. Depreciation on the plant since it was originally acquired has been charged at P5,000 per month. The plant will continue to be operated until it is sold, at which time the operations of the plant will be outsourced. The company undertook all the necessary actions to be able to classify the asset as held for sale. It is estimated that it could sell the plant for its fair value, P350,000, incurring P10,000 selling costs in the process. The plant has been depreciated at an amount of P5,000 per month. On December 31, 2016, the plant had not been sold but, due to a shortage of this type of plant, there had been an increase in the fair value to P360,000 while expected costs to sell remain at P10,000.If Joy Corporation sold the plant on March 1, 2017 for a net proceeds of P351,000, what amount should be included as gain on disposal in the…