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Business

Accounting

ty to dispose of the busine

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

On 31 December 2018, the fair value of the AFS investment increase to RM45m. On this
date, HTL Bhd signs an agreement with a third party to dispose of the business for a
consideration of RM240m. Costs to sell are estimated at 3% of the consideration.
Required:
Compute the reversal of impairment loss that shall be recognised on 31 December 2018.

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