Palm Beach Ltd has a cash generating unit (CGU) and has been assessed for impairment and it has determined an impairment loss of $100,000.
The following information relates to the assets as at 30 June 2012.

In accordance with AASB 136 "Impairment of Assets" what should be the carrying amount of buildings as at 30 June 2012?

Question

Palm Beach Ltd has a cash generating unit (CGU) and has been assessed for impairment and it has determined an impairment loss of $100,000.
The following information relates to the assets as at 30 June 2012.

In accordance with AASB 136 "Impairment of Assets" what should be the carrying amount of buildings as at 30 June 2012?

Quizplus · Accepted Answer

In accordance with AASB 136, the carrying amount of the CGU should be reduced by the impairment loss. Therefore, the carrying amount of the assets is:
- Land: $200,000
- Buildings: $800,000 - $100,000 = $700,000
- Plant and equipment: $80,000
Total carrying amount = $980,000
Therefore, the carrying amount of buildings as at 30 June 2012 should be $700,000. The only answer choice that reflects this is C.

Palm Beach Ltd Has a Cash Generating Unit (CGU) and Has