Splish Brothers Ltd. is a publicly listed company following IFRS. Assume that on December 31. 2020. the carrying amount of land on the statement of financial position (SFP) is $505.000. Management determines that the land's value in use is $435.000 and that the fair value less costs to sell is $400.000. Using the rational entity impairment model, prepare the journal entry required, if any. to record the impairment loss. (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.) Date Account Titles and Explanation Debit Credit December 31, 2020

Splish Brothers Ltd. is a publicly listed company following IFRS. Assume that on December 31. 2020. the carrying amount of land on the statement of financial position (SFP) is $505.000. Management determines that the land's value in use is $435.000 and that the fair value less costs to sell is $400.000. Using the rational entity impairment model, prepare the journal entry required, if any. to record the impairment loss. (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.) Date Account Titles and Explanation Debit Credit December 31, 2020

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

Due to an economic rebound in the area, by the end of the following year the land has a value in use of $550,000 and fair value
less costs of disposal of $455,000. Prepare the journal entry required, if any, to record the increase in its 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 O for the amounts.)
Date
Account Titles and Explanation
Debit
Credit
December
31, 2021

Splish Brothers Ltd. is a publicly listed company following IFRS. Assume that on December 31. 2020, the carrying amount of land on
the statement of financial position (SFP) is $505.000. Management determines that the land's value in use is $435.000 and that the
fair value less costs to sell is $400.000.
Using the rational entity impairment model, prepare the journal entry required, if any, to record the impairment loss. (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.)
Date
Account Titles and Explanation
Debit
Credit
December
31, 2020

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