Zebra SA is carrying
Zebra SA is carrying out its annual impairment review. The carrying amounts of its cash generating unit are as follows:
Goodwill 90000
Office Headquarters 450000
patents and software 120000
equipment 89000
total CA = 749000
There are indications that the CGU may be impaired. The net selling price of the CGU is estimated at €550,000. Value in Use has been calculated at €593,100.
Further Information:
Lion BV has recently sought to purchase Zebra’s patents and software. They were willing to pay €110,000. An office similar to the headquarters recently sold for €420,000.
1. calculate the amount of the impairment loss and show how this should be allocated between the assets of the CGU (firstly without the further information about the Lion BV purchases and then finally incorporating that further information). Explain your workings
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