a. A company runs a unit suffers a massive drop income due to the failure of its technology on 1 January 2018. The following carrying values were recorded in the books immediately prior to the impairment. Shs m Goodwill 20 Technology Brand 10 Land 50 Buildings 30 Other net assets 40 Total 155 The recoverable value of the unit is estimated at şhs 85 million. The technology is worthless, following its complete failure. The other net assets include inventory, receivables and payables. It is considered that the book value of other net assets is a reasonable representation of its net realizable value. Required Calculate the impairment on 1 January 2018.

a. A company runs a unit suffers a massive drop income due to the failure of its technology on 1 January 2018. The following carrying values were recorded in the books immediately prior to the impairment. Shs m Goodwill 20 Technology Brand 10 Land 50 Buildings 30 Other net assets 40 Total 155 The recoverable value of the unit is estimated at şhs 85 million. The technology is worthless, following its complete failure. The other net assets include inventory, receivables and payables. It is considered that the book value of other net assets is a reasonable representation of its net realizable value. Required Calculate the impairment on 1 January 2018.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 23GI

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A company runs a Business unit that suffers a massive drop in income due to the failure of its technology on 1 January 2014. The following carrying values were recorded in the books immediately prior to the impairment: $M Goodwill 14 Technology 7 Brands 11 Land 45 Buildings 40 Other net assets 39 The recoverable value of the unit is estimated at $85 million. The technology is worthless, following its complete failure. The other net assets include inventory, receivables and payables. It is considered that the book value of the other net assets is a reasonable representation of its net realizable value. Show the impact of the impairment on 1 January 2014.
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