Potters Ltd has determined that its fine china division is a CGU. The carrying amounts of the assets at 30 June 2016 are as follows: Factory $210 000 Land 150 000 Equipment 120 000 Inventories 60 000 Potters Ltd calculated the value in use of the division to be $510 000. Required: Provide the necessary journal entries for the impairment loss. Complete this too. Carrying amount Proportion Allocation of loss Net carrying amount Factory Land Equipment Total
Potters Ltd has determined that its fine china division is a CGU. The carrying amounts of the assets at 30 June 2016 are as follows: Factory $210 000 Land 150 000 Equipment 120 000 Inventories 60 000 Potters Ltd calculated the value in use of the division to be $510 000. Required: Provide the necessary journal entries for the impairment loss. Complete this too. Carrying amount Proportion Allocation of loss Net carrying amount Factory Land Equipment Total
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Potters Ltd has determined that its fine china division is a CGU. The carrying amounts of the assets at 30 June 2016 are as follows:
|
Factory |
$210 000 |
|
Land |
150 000 |
|
Equipment |
120 000 |
|
Inventories |
60 000 |
Potters Ltd calculated the value in use of the division to be $510 000.
Required:
Provide the necessary
Complete this too.
|
|
Carrying amount |
Proportion |
Allocation of loss |
Net carrying amount |
|
Factory |
|
|
||
|
Land |
|
|
|
|
|
Equipment |
|
|
|
|
|
Total |
|
|
|
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