Case 5. The assets of a CGU at year-end are as follows:Property, Plant and EquipmentPatentGoodwillCarrying amount2,500,0003,500,0001,000,000Fair value2,000,0003,000,0001,000,000The most recent review assesses the value in use of the CGU to be 4,500,000.24. What total amount should be reported as impairment loss on goodwill?25. What is the impairment loss to be allocated to the PPE?

Impairment describes a reduction in the value of a company asset, either fixed or intangible, so as…

ise 5. The assets of year-end are as föllows: Carrying amount 2,500,000 3,500,000 1,000,000 Fair value Property, Plant and Equipment Patent 2,000,000 3,000,000 1,000,000 Goodwill The most recent review assesses the value in use of the CGU to be 4,500,000. 24. What total amount should be reported as impairment loss on goodwill? 25. What is the impairment loss to be allocated to the PPE?

ise 5. The assets of year-end are as föllows: Carrying amount 2,500,000 3,500,000 1,000,000 Fair value Property, Plant and Equipment Patent 2,000,000 3,000,000 1,000,000 Goodwill The most recent review assesses the value in use of the CGU to be 4,500,000. 24. What total amount should be reported as impairment loss on goodwill? 25. What is the impairment loss to be allocated to the PPE?

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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