The Cheer Company accounts for noncurrent assets using the cost model. On July 20, 2020, Cheer classified a noncurrent asset as held for sale in accordance with IFRS 5. At that date, the asset’s carrying amount was P24,500, its fair value was estimated at P31,500 and the costs to sell at P3,150. The asset was sold on October 18, 2020 for P31,200. How much is the impairment loss and at what amount should the asset be stated in Cheer Company's statement of financial position at September 30, 2020? A.P0 and P24.500 B. P3,850 and P24,500 C. P3,850 and P28,350 D. P0 and P28,350
The Cheer Company accounts for noncurrent assets using the cost model. On July 20, 2020, Cheer classified a noncurrent asset as held for sale in accordance with IFRS 5. At that date, the asset’s carrying amount was P24,500, its fair value was estimated at P31,500 and the costs to sell at P3,150. The asset was sold on October 18, 2020 for P31,200. How much is the impairment loss and at what amount should the asset be stated in Cheer Company's statement of financial position at September 30, 2020? A.P0 and P24.500 B. P3,850 and P24,500 C. P3,850 and P28,350 D. P0 and P28,350
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The Cheer Company accounts for noncurrent assets using the cost model.
On July 20, 2020, Cheer classified a noncurrent asset as held for sale in accordance with IFRS 5. At that date, the asset’s carrying amount was P24,500, its fair value was estimated at P31,500 and the costs to sell at P3,150. The asset was sold on October 18, 2020 for P31,200.
How much is the impairment loss and at what amount should the asset be stated in Cheer Company'sstatement of financial position at September 30, 2020?
On July 20, 2020, Cheer classified a noncurrent asset as held for sale in accordance with IFRS 5. At that date, the asset’s carrying amount was P24,500, its fair value was estimated at P31,500 and the costs to sell at P3,150. The asset was sold on October 18, 2020 for P31,200.
How much is the impairment loss and at what amount should the asset be stated in Cheer Company's
A.P0 and P24.500
B. P3,850 and P24,500
C. P3,850 and P28,350
D. P0 and P28,350
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