Question 9 At 30 September 2023 Sandown Ltd's trial balance showed a brand at a cost of £30 million less accumulated amortisation brought forward at 1 October 2022 of £9 million. Amortisation is based on a 10-year useful life. An impairment review on 1 April 2023 concluded that the brand had a value in use of £12 million and a remaining useful life of three years. However, on the same date Sandown Co received an offer to purchase the brand for £15 million. Required: What should be the carrying amount of the brand in the statement of financial position of Sandown Ltd as at 30 September 2023. (Enter your answer to the nearest £000)
Question 9 At 30 September 2023 Sandown Ltd's trial balance showed a brand at a cost of £30 million less accumulated amortisation brought forward at 1 October 2022 of £9 million. Amortisation is based on a 10-year useful life. An impairment review on 1 April 2023 concluded that the brand had a value in use of £12 million and a remaining useful life of three years. However, on the same date Sandown Co received an offer to purchase the brand for £15 million. Required: What should be the carrying amount of the brand in the statement of financial position of Sandown Ltd as at 30 September 2023. (Enter your answer to the nearest £000)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Question 9
At 30 September 2023 Sandown Ltd's trial balance showed a brand at a cost of £30 million
less accumulated amortisation brought forward at 1 October 2022 of £9 million.
Amortisation is based on a 10-year useful life. An impairment review on 1 April 2023
concluded that the brand had a value in use of £12 million and a remaining useful life of
three years. However, on the same date Sandown Co received an offer to purchase the
brand for £15 million.
Required:
What should be the carrying amount of the brand in the statement of financial position of
Sandown Ltd as at 30 September 2023. (Enter your answer to the nearest £000)
AI-Generated Solution
AI-generated content may present inaccurate or offensive content that does not represent bartleby’s views.
Unlock instant AI solutions
Tap the button
to generate a solution
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education