Kingbird Properties Ltd. is a publicly listed company following IFRS. Assume that on December 31, 2023, the carrying amount of land on the statement of financial position (SFP) is $500,000. Management determines that the land's value in use is $425,000 and that the fair value less costs to sell is $365,000. (a) Using the rational entity impairment model, prepare the journal entry required, if any, to record the impairment loss. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List debit entry before credit entry.) Date December 31, 2023 Account Titles and Explanation Loss on Impairment Debit Credit Accumulated Depreciation - Equipment
Kingbird Properties Ltd. is a publicly listed company following IFRS. Assume that on December 31, 2023, the carrying amount of land on the statement of financial position (SFP) is $500,000. Management determines that the land's value in use is $425,000 and that the fair value less costs to sell is $365,000. (a) Using the rational entity impairment model, prepare the journal entry required, if any, to record the impairment loss. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List debit entry before credit entry.) Date December 31, 2023 Account Titles and Explanation Loss on Impairment Debit Credit Accumulated Depreciation - Equipment
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Kingbird Properties Ltd. is a publicly listed company following IFRS. Assume that on December 31, 2023, the carrying amount of land
on the statement of financial position (SFP) is $500,000. Management determines that the land's value in use is $425,000 and that the
fair value less costs to sell is $365,000.
(a)
Using the rational entity impairment model, prepare the journal entry required, if any, to record the impairment loss. (Credit
account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for
the account titles and enter O for the amounts. List debit entry before credit entry.)
Date
December
31, 2023
Account Titles and Explanation
Loss on Impairment
Debit
Credit
Accumulated Depreciation - Equipment
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