Blue Oak Investments owns a retail business which has suffered badly during the recession. Blue Oak Investments treats this business as a separate cash generating unit. The carrying amounts of the assets comprising the retail business are: $’000 Building 900 Plant and equipment 300 Inventory 70 Other current assets 130 Goodwill 40 An impairment review has been carried out as at 31 December 20X9 and the recoverable amount of the cash generating unit is estimated at $1.3m. Required Restate the carrying amounts of the assets of the retail business after accounting for the result of the impairment review.

Blue Oak Investments owns a retail business which has suffered badly during the recession. Blue Oak Investments treats this business as a separate cash generating unit. The carrying amounts of the assets comprising the retail business are: $’000 Building 900 Plant and equipment 300 Inventory 70 Other current assets 130 Goodwill 40 An impairment review has been carried out as at 31 December 20X9 and the recoverable amount of the cash generating unit is estimated at $1.3m. Required Restate the carrying amounts of the assets of the retail business after accounting for the result of the impairment review.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 5PB: Johnson, Incorporated, had the following transactions during the year: Purchased a building for...

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