Broadbeach Ltd is a manufacturing company with three subsidiaries.The following information relates to the goodwill account of Broadbeach Ltd for the year ended 30 June 2009: $$\begin{array} { | l | r | r | r | r | }
\hline \text { (in dollars) } & \text { Goodwill } & \begin{array} { c }
\text { Accumulated } \
\text { impairment loss }
\end{array} & \begin{array} { c }
\text { Carrying amount } \
\text { of CGU }
\end{array} & \begin{array} { c }
\text { Recoverable amount } \
\text { of CGU }
\end{array} \
\hline \text { Mantra Ltd } & 50000 & 10000 & 250000 & 270000 \
\hline \text { Oceania Ltd } & 40000 & \text { Nil } & 310000 & 250000 \
\hline \text { Wave Ltd } & 60000 & \text { Nil } & 450000 & 600000 \
\hline
\end{array}$$ What is the carrying amount of goodwill as at 30 June 2009 consistent with AASB 136 Impairment of Assets?

Question

Broadbeach Ltd is a manufacturing company with three subsidiaries.The following information relates to the goodwill account of Broadbeach Ltd for the year ended 30 June 2009: $$\begin{array} { | l | r | r | r | r | } 
\hline \text { (in dollars) } & \text { Goodwill } & \begin{array} { c } 
\text { Accumulated } \
\text { impairment loss }
\end{array} & \begin{array} { c } 
\text { Carrying amount } \
\text { of CGU }
\end{array} & \begin{array} { c } 
\text { Recoverable amount } \
\text { of CGU }
\end{array} \
\hline \text { Mantra Ltd } & 50000 & 10000 & 250000 & 270000 \
\hline \text { Oceania Ltd } & 40000 & \text { Nil } & 310000 & 250000 \
\hline \text { Wave Ltd } & 60000 & \text { Nil } & 450000 & 600000 \
\hline
\end{array}$$ What is the carrying amount of goodwill as at 30 June 2009 consistent with AASB 136 Impairment of Assets?

Quizplus · Accepted Answer

The carrying amount of goodwill is calculated by adding the goodwill amounts for each subsidiary and subtracting any accumulated impairment losses. For Mantra Ltd, the goodwill is $50,000 with an accumulated impairment loss of $10,000, leaving $40,000. Oceania Ltd has $40,000 in goodwill with no impairment loss. Wave Ltd has $60,000 in goodwill with no impairment loss. Adding these together ($40,000 + $40,000 + $60,000) gives a total carrying amount of $140,000.

Broadbeach Ltd Is a Manufacturing Company with Three Subsidiaries What Is the Carrying Amount of Goodwill as at 30