Shelley Beach Ltd has one cash generating unit (CGU) and it has been determined that the CGU has incurred an impairment loss of $80,000 for the year ended 30 June 2012.
The carrying amounts of the assets as at 30 June 2012 are as follows:

In accordance with AASB 136 "Impairment of Assets", what should be the carrying amounts for buildings, equipment and goodwill as at 30 June 2012, respectively?

Question

Shelley Beach Ltd has one cash generating unit (CGU) and it has been determined that the CGU has incurred an impairment loss of $80,000 for the year ended 30 June 2012.
The carrying amounts of the assets as at 30 June 2012 are as follows:

In accordance with AASB 136 "Impairment of Assets", what should be the carrying amounts for buildings, equipment and goodwill as at 30 June 2012, respectively?

Quizplus · Accepted Answer

According to AASB 136, the impairment loss is allocated to the assets of the CGU based on their carrying amounts. The carrying amount of goodwill is reduced to zero before reducing the carrying amounts of other assets. Therefore, the carrying amounts for buildings and equipment after deducting the impairment loss would be $270,000 each. The carrying amount of goodwill would be reduced to zero.

Shelley Beach Ltd Has One Cash Generating Unit (CGU) and It