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The following information relates to Mangi Food cash generated unit. Goodwill attributable to the cash generated unit amounts to R57 000 and the CGU consists of the following assets. Acquisition date Cost Depreciation policy Building 1 January 2019 356 780 5 years straight line with R10 000 residual value Plant 31 July 2017 234 600 10% diminishing balance Equipment 6 July 2019 123 450 5% on cost Machinery 1 January 2017 200 000 10% on cost Value in use and fair value amounted to R620 000 and R565 700 respectively. And cost to sell were estimated as R13 400. Required Calculate and allocate the impairment of CGU.

The following information relates to Mangi Food cash generated unit. Goodwill attributable to the cash generated unit amounts to R57 000 and the CGU consists of the following assets. Acquisition date Cost Depreciation policy Building 1 January 2019 356 780 5 years straight line with R10 000 residual value Plant 31 July 2017 234 600 10% diminishing balance Equipment 6 July 2019 123 450 5% on cost Machinery 1 January 2017 200 000 10% on cost Value in use and fair value amounted to R620 000 and R565 700 respectively. And cost to sell were estimated as R13 400. Required Calculate and allocate the impairment of CGU.

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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The following information relates to Mangi Food cash generated unit. Goodwill attributable to the cash generated unit amounts to R57 000 and the CGU consists of the following assets. Acquisition date Cost Depreciation policy Building 1 January 2019 356 780 5 years straight line with R10 000 residual value Plant 31 July 2017 234 600 10% diminishing balance Equipment 6 July 2019 123 450 5% on cost Machinery 1 January 2017 200 000 10% on cost Value in use and fair value amounted to R620 000 and R565 700 respectively. And cost to sell were estimated as R13 400. Required Calculate and allocate the impairment of CGU.
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