Case 9. The assets and liabilities of a manufacturing plant of Joy Company form a disposal group. The criteria forclassification are met on January 1, 2020, As of January 1, 2020 its carrying amount of the assets and liabilities of theplant are as follows:Goodwill allocated200,000,000Land and building150,000,000Plant, machinery and equipmentInvestment property491,700,000130,000,000Receivables and financial assets75,000,000110,000,000Inventories, net of writedownBorrowingsCarrying Value(300,000,000)856,700,000The investment property has been reported at its current fair value at the reporting date December 31, 2020. Thereceivables and financial assets were properly valued at 75,000,000. The inventories were properly valued at net realizablevalue at the reporting date.Negotiations to dispose of the manufacturing plant to JIT company is in the advanced stage and the buyer is willing to paya price of 603,400,000 to buy the plant as a whole. Cost to sell is estimated at 1,700,000.9. What amount of loss should be recognized in the profit or loss at the time the plant was reclassified as a disposalgroup?

Disposal group refers to the group of the assets as well as liabilities which are intended to be…

9. The assets and liabilities of a manufacturing plant of Joy Company form a disposal group. The criteria ification are met on January 1, 2020, As of January 1, 2020 its carrying amount of the assets and liabilities are as follows: Goodwill allocated 200,000,000 Land and building 150,000,000 Plant, machinery and equipment Investment property 491,700,000 130,000,000 Receivables and financial assets 75,000,000 110,000,000 Inventories, net of writedown Borrowings Carrying Value (300,000,000) 856,700,000

9. The assets and liabilities of a manufacturing plant of Joy Company form a disposal group. The criteria ification are met on January 1, 2020, As of January 1, 2020 its carrying amount of the assets and liabilities are as follows: Goodwill allocated 200,000,000 Land and building 150,000,000 Plant, machinery and equipment Investment property 491,700,000 130,000,000 Receivables and financial assets 75,000,000 110,000,000 Inventories, net of writedown Borrowings Carrying Value (300,000,000) 856,700,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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