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Impairment of an asset At 31 December 2017, T Company has specialized equipment with the following...

Impairment of an asset

At 31 December 2017, T Company has specialized equipment with the following characteristics:

                Carrying amount:                                             $50,000

                Selling price                                                        $40,000

                Cost of disposal                                                   $1,000

                Expected future cash flows                          $55,000

                PV of expected future cash flows              $46,000

Explain whether the asset is impaired under:

  • IAS 36
  • U.S. GAAP
Business   Accounting   
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