On 30 June 2018, HTL Bhd classifies a business segment as a disposal group for sale. The carrying amount and the impairment loss recognised are as follows: Before RM'millionImpairment RM'millionAfter RM'millionGoodwill allocated50950-Property, at revalued amount80(13.3)66.7Plant and equipment, at cost100(16.7)83.3AFS investment at fait value40-40Other monetary assets30-30Net amount300(80)220On 31 December 2018, the fair value of the AFS investment increase to RM45m. On this date, HTL Bhd signs an agreement with a third party to dispose of the business for a consideration of RM240m. Costs to sell are estimated at 3% of the consideration. Required: Compute the reversal of impairment loss that shall be recogniZed on 31 December 2018.

Impairment loss is the result of decline in the fair market value of an…

Answered: On 30 June 2018, HTL Bhd classifies a…

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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On 30 June 2018, HTL Bhd classifies a business segment as a disposal group for sale. The carrying amount and the impairment loss recognised are as follows:

	Before RM'million	Impairment RM'million	After RM'million
Goodwill allocated	50	950	-
Property, at revalued amount	80	(13.3)	66.7
Plant and equipment, at cost	100	(16.7)	83.3
AFS investment at fait value	40	-	40
Other monetary assets	30	-	30
Net amount	300	(80)	220

On 31 December 2018, the fair value of the AFS investment increase to RM45m. On this date, HTL Bhd signs an agreement with a third party to dispose of the business for a consideration of RM240m. Costs to sell are estimated at 3% of the consideration. Required: Compute the reversal of impairment loss that shall be recogniZed on 31 December 2018.

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