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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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
5
Brand
10
Land
50
Buildings
30
Other net assets
40
Total
155
The recoverable value of the unit is estimated at shs 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.
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