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Question 11 A cash-generating unit comprises the following assets: £000 700 200 90 20 1,010 Building Plant and equipment Goodwill Current assets Following an impairment review it was discovered that an item of plant carried at £40,000 is damaged and will have to be scrapped. The recoverable amount of the cash-generating unit is estimated at £750,000. Required: What will be the carrying amount of the building after the impairment loss has been recognised (to the nearest £000).

Question 11 A cash-generating unit comprises the following assets: £000 700 200 90 20 1,010 Building Plant and equipment Goodwill Current assets Following an impairment review it was discovered that an item of plant carried at £40,000 is damaged and will have to be scrapped. The recoverable amount of the cash-generating unit is estimated at £750,000. Required: What will be the carrying amount of the building after the impairment loss has been recognised (to the nearest £000).

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question 11 A cash-generating unit comprises the following assets: £000 700 200 90 20 1,010 Building Plant and equipment Goodwill Current assets Following an impairment review it was discovered that an item of plant carried at £40,000 is damaged and will have to be scrapped. The recoverable amount of the cash-generating unit is estimated at £750,000. Required: What will be the carrying amount of the building after the impairment loss has been recognised (to the nearest £000).
Transcribed Image Text:Question 11 A cash-generating unit comprises the following assets: £000 700 200 90 20 1,010 Building Plant and equipment Goodwill Current assets Following an impairment review it was discovered that an item of plant carried at £40,000 is damaged and will have to be scrapped. The recoverable amount of the cash-generating unit is estimated at £750,000. Required: What will be the carrying amount of the building after the impairment loss has been recognised (to the nearest £000).
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