(c) Apply HKAS 36 Impairment of Assets to allocate impairment loss to the assets in the...
(c) Apply HKAS 36 Impairment of Assets to allocate impairment loss to the assets in the CGU of Cat Ltd. Show your workings. (12 marks)
(d) Explain any two factors that the accountant should consider in determining the cash generating unit for Cat Ltd. (5 marks)
Homework Answers
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(c) Apply HKAS 36 Impairment of Assets to allocate impairment
loss to the assets in the...
impairment loss
4. Danny Ltd reported the following assets in its statement of financial position at 30 June 2021:Cash11 000Accounts receivable40 000Allowance for doubtful debts(9 000)Inventories54 000Land400 000Buildings1 175 000Accumulated depreciation — buildings(200 000)Plant850 000Accumulated depreciation — plant(375 000)Goodwill52 000 Danny Ltd undertook impairment testing and determined the recoverable amount of the assets, a cash generating unit (CGU), at 30 June 2021 to be $1,700,000.Required:Calculate and allocate any impairment loss across the cash generating unit. Prepare the necessary journal entry for impairment loss.
The Beverages Division is regarded as a cash-generating unit of Beta Ltd. At 30 June 2019,...
The Beverages Division is regarded as a cash-generating unit of Beta Ltd. At 30 June 2019, the carrying amounts of the assets of the CGU were as follows: Premises Inventory Machinery Vehicles Goodwill $700,000 90,000 200,000 50,000 50,000 IS Beta Ltd measured the value in use of the Beverages Division at 30 June 2019, determining it to be $1,000,000. The company also determined that the fair value of the premises is $690,000 Required a. Explain why impairment testing requires the...
Impairment of assets (i need PART B answer , PLEASE) Aero Ltd has determined that its...
Impairment of assets (i need PART B answer , PLEASE) Aero Ltd has determined that its aviation division is a cash–generating unit (CGU). Information as at 30th June 2020 is as follows: $ Buildings – At cost 600,000 Equipment – At cost 500,000 Inventory 25,000 Land 250,000 Receivables 150,000 Goodwill 90,000 Total 1,615,000 Additional information: Buildings - Accumulated depreciation as at 30 June 2020: $100,000 Equipment - Accumulated depreciation as at 30 June 2020: $200,000 Aero Ltd calculated the value...
Problem 1 The Faris Corporation has determined that there may be indicators of impairment for one...
Problem 1 The Faris Corporation has determined that there may be indicators of impairment for one of their assets - an office building that is currently leased out and a cash generating unit (CGU) representing a business unit. Data for the building and CGU follow. The year end is December 31, 20x4. Building Carrying value (20 years remaining, $500,000 residual value) Fair value Costs to sell Future cash flows generated by building (each year to the end of its useful...
Impairment of assets Fresh Ltd has two retail businesses that represent separate cash generating units, ‘Fresh...
Impairment of assets Fresh Ltd has two retail businesses that represent separate cash generating units, ‘Fresh Juice Bar’ and ‘Fresh Salads’. At 30 June 2019, the carrying amounts of the assets of the units, valued pursuant to the cost model, are as follows: Fresh Juice Bar Fresh Salads $ $ Cash 18,000 14,000 Inventory 4,000 3,000 Fixtures and fittings 50,000 65,000 Accumulated depreciation – fixtures and fittings (45,000) (15,000) Equipment 65,000 90,000 Accumulated depreciation – equipment (30,000) (30,000) Motor vehicles ...
Nasoso Ltd operates two hotels in the Nadi area. Hotel A1 provides up-market accommodation in beachside...
Nasoso Ltd operates two hotels in the Nadi area. Hotel A1 provides up-market accommodation in beachside bures while Hotel B2 provides budget accommodation in a 3-storey property. The two hotels share the same entrance and lobby. Each hotel has its own business licenses and staff. The two hotels are managed by one team of senior managers. Marketing and reservations are handled jointly and guests from both hotels can dine in any of the restaurants in either property. Part A The...
Park B: (4 marks) In setting up its systems to apply AASB 136 Impairment of Assets,...
Park B: (4 marks) In setting up its systems to apply AASB 136 Impairment of Assets, management of Terry Ltd wants to know how often the company needs to apply an impairment test on its assets, and what information it needs to generate to determine whether a test is needed. Required Explain to the management: how often the company needs to apply an impairment test on its assets. (2 marks) what information it needs to generate to determine whether a...
Park B: (4 marks) In setting up its systems to apply AASB 136 Impairment of Assets,...
Park B: (4 marks) In setting up its systems to apply AASB 136 Impairment of Assets, management of Terry Ltd wants to know how often the company needs to apply an impairment test on its assets, and what information it needs to generate to determine whether a test is needed. Required Explain to the management: how often the company needs to apply an impairment test on its assets. (2 marks) what information it needs to generate to determine whether a...
Question 12. A cash generating unit (CGU) comprises property with a carrying amount of $400,000, plant...
Question 12. A cash generating unit (CGU) comprises property with a carrying amount of $400,000, plant with a carrying amount of $100,000 and goodwill with a carrying amount of $50,000. The property has a fair value less costs to sell of $380,000, and a value in use of $350,000. The CGU has a fair value less costs to sell of $440,000 and a value in use of $460,000. Which of the following statements is true? The maximum impairment loss allocated...
Just explain the part I added red notice for it( please show me numbers, the calculation,...
Just explain the part I added red notice for it( please show me
numbers, the calculation, what to add multiple, dividend to get
this result
Refrence
Deegan. (2016). Financial Accounting . McGraw-Hill
Education, Australia
REVIEW QULSIUN TWELVE Zoro Ltd has determined that its China division is a cash-generating unit. The carrying amounts of the assets at 30 June 2014 are as follows: Factory Land Equipment Machinery $210,000 $150,000 $120,000 $60,000 Zoro Ltd calculated the value in use of the division...
The Beverages Division is regarded as a cash-generating unit of Beta Ltd. At 30 June 2019, the carrying amounts of the assets of the CGU were as follows: Premises Inventory Machinery Vehicles Goodwill $700,000 90,000 200,000 50,000 50,000 IS Beta Ltd measured the value in use of the Beverages Division at 30 June 2019, determining it to be $1,000,000. The company also determined that the fair value of the premises is $690,000 Required a. Explain why impairment testing requires the...
Problem 1 The Faris Corporation has determined that there may be indicators of impairment for one of their assets - an office building that is currently leased out and a cash generating unit (CGU) representing a business unit. Data for the building and CGU follow. The year end is December 31, 20x4. Building Carrying value (20 years remaining, $500,000 residual value) Fair value Costs to sell Future cash flows generated by building (each year to the end of its useful...
Nasoso Ltd operates two hotels in the Nadi area. Hotel A1 provides up-market accommodation in beachside bures while Hotel B2 provides budget accommodation in a 3-storey property. The two hotels share the same entrance and lobby. Each hotel has its own business licenses and staff. The two hotels are managed by one team of senior managers. Marketing and reservations are handled jointly and guests from both hotels can dine in any of the restaurants in either property. Part A The...
Park B: (4 marks) In setting up its systems to apply AASB 136 Impairment of Assets, management of Terry Ltd wants to know how often the company needs to apply an impairment test on its assets, and what information it needs to generate to determine whether a test is needed. Required Explain to the management: how often the company needs to apply an impairment test on its assets. (2 marks) what information it needs to generate to determine whether a...
Park B: (4 marks) In setting up its systems to apply AASB 136 Impairment of Assets, management of Terry Ltd wants to know how often the company needs to apply an impairment test on its assets, and what information it needs to generate to determine whether a test is needed. Required Explain to the management: how often the company needs to apply an impairment test on its assets. (2 marks) what information it needs to generate to determine whether a...
Just explain the part I added red notice for it( please show me
numbers, the calculation, what to add multiple, dividend to get
this result
Refrence
Deegan. (2016). Financial Accounting . McGraw-Hill
Education, Australia
REVIEW QULSIUN TWELVE Zoro Ltd has determined that its China division is a cash-generating unit. The carrying amounts of the assets at 30 June 2014 are as follows: Factory Land Equipment Machinery $210,000 $150,000 $120,000 $60,000 Zoro Ltd calculated the value in use of the division...
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