Finsbury Ltd has a cash generating unit (CGU) that suffers a large drop in income due to reduced demand for its products. An impairment review was carried out and the recoverable amount of the cash generating unit was determined at $100m.The assets of the CGU had the following carrying amounts immediately prior to the impairment: $m Goodwill 25 Intangibles 60 Property, plant and equipment 30 Inventory 15 Trade receivables 10 140 The inventory and receivables are considered to be included at their recoverable amounts. REQUIRED: Calculate carrying amount of each asset after writing off impairment loss.
Finsbury Ltd has a cash generating unit (CGU) that suffers a large drop in income due to reduced demand for its products. An impairment review was carried out and the recoverable amount of the cash generating unit was determined at $100m.The assets of the CGU had the following carrying amounts immediately prior to the impairment: $m Goodwill 25 Intangibles 60 Property, plant and equipment 30 Inventory 15 Trade receivables 10 140 The inventory and receivables are considered to be included at their recoverable amounts. REQUIRED: Calculate carrying amount of each asset after writing off impairment loss.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Finsbury Ltd has a cash generating unit (CGU) that suffers a large drop in income due to reduced demand
for its products. An impairment review was carried out and the recoverable amount of the cash generating
unit was determined at $100m.The assets of the CGU had the following carrying amounts immediately prior
to the impairment:
$m
Intangibles 60
Property, plant and equipment 30
Inventory 15
Trade receivables 10
140
The inventory and receivables are considered to be included at their recoverable amounts.
REQUIRED:
Calculate carrying amount of each asset after writing off impairment loss.
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