Question

Bovine Ltd. has the following assets in a CGU: Cam thousands) The recoverable amount has been determined to be $3,050. The separate fair value less costs to sell for land is $1,170; 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.) Car e Proportion thousands impairment Netbook value Ements Buning S050 2. Assume that the recoverable amount recovered to $3,150 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 $1.170. There is no concem with a ceiling value when assigning the recovery to building or equipment. (Enter answers in thousands of dollars.) Caming thousands

Answer 1

Allocation of Carrying Value (thousand) Net Book Impairment loss Value Proporation 34.82% % Equipment Building Land 655 435 1090 61.98% % 1940 775 1165 1220 1170 50 3.19%% Goodwill 100 40 60 4350 1300 3050.00 Carrying amount of assets except land 3130 Recoverable amount except and 3050-1170= 1880 Impairment loss except land 1250 Impairment loss for land 1220-1170= 50 Total impairment loss 4350-3050= 1300 Carrying Value Allocation of Net Book Proporation reversal of loss 34.84% % (thousand) Value Equipment Building Land 655 35 620 61.97% % 1103 1165 62. 1170 1170 0 Goodwill 3.19%% 60 3 57 3050 2950.00 100 Carrying amount of assets except land Recoverable amount except land 1880 3150-1170 1980 Impairment loss except land 100 Impairment reversal for land 1170-1170= 0 Total impairment loss reversal 3150-3050= 100