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:
$$\begin{array} { | l | r | }
\hline & \text { Carrying amount } \
\hline \text { Buildings } & 300000 \
\hline \text { Equipment } & 300000 \
\hline \text { Goodwill } & \underline { 20000 } \
\hline \text { Total } & \underline { 620000 } \
\hline
\end{array}$$ 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:
$$\begin{array} { | l | r | } 
\hline & \text { Carrying amount } \
\hline \text { Buildings } & 300000 \
\hline \text { Equipment } & 300000 \
\hline \text { Goodwill } & \underline { 20000 } \
\hline \text { Total } & \underline { 620000 } \
\hline
\end{array}$$ 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

Goodwill is fully impaired first, reducing it to $0. The remaining $60,000 impairment is allocated to buildings and equipment proportionally, reducing each by $30,000.

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