A cash generating unit (CGU) consist of the following assets: ...
90.2K
Verified Solution
Link Copied!
Question
Accounting
A cash generating unit (CGU) consist of the following assets:
|
| Carrying amount |
| Goodwill | 500 |
| Plant | 10,000 |
| Vehicle | 8,000 |
| Land | 25,000 |
| CA of CGU | $43,500 |
The recoverable amount of the CGU is determined at $45,000. The CGU was impaired in prior years.
The recoverable amount of individual asset is as follows:
| Plant | 10,500 |
| Vehicle | 9,000 |
| Land | 25,900 |
Required: Prepare journal entries to account for the reversal of impairment of the CGU in accordance with IAS 36 Impairment of Assets.
Answer:
| Dr | Acc depr and impairment loss- plant | 349 |
|
| Cr | Reversal of impairment (income) |
| 349 |
|
| (reversal of impairment loss of plant) |
|
|
| Dr | Acc depr and impairment loss- vehicle | 279 |
|
| Cr | Reversal of impairment (income) |
| 279 |
|
| (reversal of impairment loss of vehicle) |
|
|
| Dr | Acc depr and impairment loss- land | 872 |
|
| Cr | Reversal of impairment (income) |
| 872 |
|
| (reversal of impairment loss of land) |
|
|
Could you explain the answer for me?
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.