30 September 20X9 Hatch PLC’s trial balance showed a brand at cost of $30 million, less accumulated amortisation brought forward at 1 October 20X8 of $9 million. Amortisation is based on a ten-year useful life. An impairment review on 1 April 20X9 concluded that the brand had a value in use of $12 million and a remaining useful life of three years. However, on the same date Hatch PLC received an offer to purchase the brand for $15 million. What should be the carrying amount of the brand in the statement of financial position of Hatch PLC as at 30 September 20X9? Select one alternative $14,250,000 $10,000,000 $12,500,000
30 September 20X9 Hatch PLC’s trial balance showed a brand at cost of $30 million, less accumulated amortisation brought forward at 1 October 20X8 of $9 million. Amortisation is based on a ten-year useful life. An impairment review on 1 April 20X9 concluded that the brand had a value in use of $12 million and a remaining useful life of three years. However, on the same date Hatch PLC received an offer to purchase the brand for $15 million. What should be the carrying amount of the brand in the statement of financial position of Hatch PLC as at 30 September 20X9? Select one alternative $14,250,000 $10,000,000 $12,500,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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t 30 September 20X9 Hatch PLC’s
What should be the carrying amount of the brand in the
Select one alternative
- $14,250,000
- $10,000,000
- $12,500,000
- $15,000,000
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