n - Equipment (300,000) Goodwill 30,000 All items of property, plant and equipment are measured using the cost model. At 30 June 2020, the recoverable amount of the cash-generating unit was $480,000. For the period ending 30 June 2021, the deprec
At 30 June 2020, White Ltd reported the following cash-generating unit, with the carrying amount totaling $530,000:
|
Land |
200,000 |
|
Equipment |
600,000 |
|
|
(300,000) |
|
|
30,000 |
All items of property, plant and equipment are measured using the cost model. At 30 June 2020, the recoverable amount of the cash-generating unit was $480,000.
For the period ending 30 June 2021, the depreciation charge on the equipment was $38,000. If the equipment had not been impaired the charge would have been $41,000.
At 30 June 2021, the recoverable amount of the unit was calculated to be $15,000 greater than the carrying amount of the assets of the unit. As a result, White Ltd recognized a reversal of the previous year’s impairment loss.
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