Last Ltd has two divisions, Time and Leisure. Each of these is regarded as a separate CGU. At 31 December 2019, the carrying amounts of the assets of the two divisions were as follows. Time Lelsure Plant Accumulated depreciation Patent Inventories Recelvables Goodwill $1 500 (650) 240 54 75 25 $1200 (375) 75 82 20 The receivables were regarded as collectable, and the inventories fair value less costs of disposal wa disposal of $220. The plant at Time was depreciated at $300 p.a, and that at Leisure was depreciatec Last Ltd undertook impairment testing at 31 December 2019, and determined the recoverable amoun Time Leisure $1044 990 As a result, management increased the depreciation of the Time plant from $300 to $350 p.a. for the y By 31 December 2020, the performance in both divisions had improved, and the carrying amounts of t follows. Time Leisure Carrying amount Recoverable amount $1322 1502 $1433 1520 Required Determine how Last Ltd should account for the results of the impairment tests at both 31 December 20
Last Ltd has two divisions, Time and Leisure. Each of these is regarded as a separate CGU. At 31 December 2019, the carrying amounts of the assets of the two divisions were as follows. Time Lelsure Plant Accumulated depreciation Patent Inventories Recelvables Goodwill $1 500 (650) 240 54 75 25 $1200 (375) 75 82 20 The receivables were regarded as collectable, and the inventories fair value less costs of disposal wa disposal of $220. The plant at Time was depreciated at $300 p.a, and that at Leisure was depreciatec Last Ltd undertook impairment testing at 31 December 2019, and determined the recoverable amoun Time Leisure $1044 990 As a result, management increased the depreciation of the Time plant from $300 to $350 p.a. for the y By 31 December 2020, the performance in both divisions had improved, and the carrying amounts of t follows. Time Leisure Carrying amount Recoverable amount $1322 1502 $1433 1520 Required Determine how Last Ltd should account for the results of the impairment tests at both 31 December 20
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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