Impairment of a CGU ✰✰ Bow Ltd reported the following assets in its statement of financial position at 30 June 2019. Plant Accumulated depreciation Land Patent Office equipment Accumulated depreciation Inventories Cash and cash equivalents $ 800000 (240000) 300000 240000 620000 (340000) 220000 180000 $1780000 LO5 The recoverable amount of the entity was calculated to be $1660 000. The fair value less costs of disposal of the land was $280 913. Required Prepare the journal entry for any impairment loss at 30 June 2019.
Impairment of a CGU ✰✰ Bow Ltd reported the following assets in its statement of financial position at 30 June 2019. Plant Accumulated depreciation Land Patent Office equipment Accumulated depreciation Inventories Cash and cash equivalents $ 800000 (240000) 300000 240000 620000 (340000) 220000 180000 $1780000 LO5 The recoverable amount of the entity was calculated to be $1660 000. The fair value less costs of disposal of the land was $280 913. Required Prepare the journal entry for any impairment loss at 30 June 2019.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Impairment of a CGU ✰✰
Bow Ltd reported the following assets in its statement of financial position at 30 June 2019.
Plant
Accumulated depreciation
Land
Patent
Office equipment
Accumulated depreciation
Inventories
Cash and cash equivalents
$ 800000
(240000)
300000
240000
620000
(340000)
220000
180000
$1780000
LO5
The recoverable amount of the entity was calculated to be $1660 000. The fair value less costs
of disposal of the land was $280 913.
Required
Prepare the journal entry for any impairment loss at 30 June 2019.
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