Question 5:
Bovine Ltd. has the following assets in a CGU:
Carrying Value (thousands) |
||||
Equipment |
$ |
600 |
||
Building |
650 |
|||
Land |
700 |
|||
Goodwill |
550 |
|||
$ |
2,500 |
|||
The recoverable amount has been determined to be $1,500. The
separate fair value less costs to sell for land is $600; no other
assets could be separately valued.
Required:
1. Allocate the impairment loss to individual assets and calculate
the net book value of each asset after the impairment.
(Enter answers in thousands of dollars.)
2. Assume that the recoverable amount recovered to $1,800 in the
subsequent year. Allocate the impairment reversal to individual
assets and calculate the net book value of each asset after the
impairment. The separate fair value less costs to sell for land
remains at $600. There is no concern with a ceiling value when
assigning the recovery to building or equipment. (Enter
answers in thousands of dollars.)
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