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  3. (b) salem limited operates a unit that suffered a

(B) Salem Limited operates a unit that suffered a very significant drop in revenue due...

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Accounting

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(B) Salem Limited operates a unit that suffered a very significant drop in revenue due to the failure of its technology on 1 January 2020. The following carrying values were recorded in the books immediately prior to the impairment: The recoverable value of the unit is estimated at $380 million. The technology is considered worthless, following its failure and trademarks can be disposed of on the market at January 2,2020 for $10m. The other net assets include inventory, receivables and payables. It is considered that the book value of other net assets is a representation of its net realizable value. REQUIRED: 1. Calculate the impairment on 1 January 2020. (2 marks) 2. Show how the impairment is distributed among the assets of the Cash Generating Units, CGU (based on IFRS 3). (14 marks) NB: round off to the nearest dollar

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