Po34.Coronado Landscaping Limited has determined that its lawn maintenance division is a cash-generating unit under IFRSThe carrying amounts of the division's assets at December 31, 2023, are as follows : Land $27,000 Building56,000 Equipment36,000 Vehicles19,000 $138,000 The lawn maintenance division has been assessed for impairment and it is determined that the division's value in use is $124,200, fair value less costs to sell is $93,000 , and undiscounted future net cash flows are $162,000. Determine if the cash-generating unit is impaired and prepare the journal entry, if any, to record the impairment at December 31,2023, assuming that none of the individual assets in the division has a determinable recoverable amount. (Credit account titlesare 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 0 for the amounts. List all debit entries before credit entries. Do not round intermediatecalculations. Round final answers to 0 decimal places, e.g. 5,275.)Date Account Titles and ExplanationDecember31, 2023Loss on ImpairmentAccumulated Depreciation - BuildingsSave for LaterAccumulated Depreciation - EquipmentAccumulated Depreciation - VehiclesLandeTextbook and MediaList of AccountsDebitAttempts: 2 of 3 usedCreditSubmit Answer

Under IFRS, the recoverable amount of the cash-generating unit (CGU) is the higher of (1) value in…

Answered: o34. Coronado Landscaping Limited has…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Po34. Coronado Landscaping Limited has determined that its lawn maintenance division is a cash-generating unit under IFRSThe carrying amounts of the division's assets at December 31, 2023, are as follows : Land $27,000 Building56,000 Equipment36,000 Vehicles19,000 $138,000 The lawn maintenance division has been assessed for impairment and it is determined that the division's value in use is $124,200, fair value less costs to sell is $93,000 , and undiscounted future net cash flows are $162,000.

Determine if the cash-generating unit is impaired and prepare the journal entry, if any, to record the impairment at December 31,
2023, assuming that none of the individual assets in the division has a determinable recoverable amount. (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 0 for the amounts. List all debit entries before credit entries. Do not round intermediate
calculations. Round final answers to 0 decimal places, e.g. 5,275.)
Date Account Titles and Explanation
December
31, 2023
Loss on Impairment
Accumulated Depreciation - Buildings
Save for Later
Accumulated Depreciation - Equipment
Accumulated Depreciation - Vehicles
Land
eTextbook and Media
List of Accounts
Debit
Attempts: 2 of 3 used
Credit
Submit Answer

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