Jersey plc has a division with the following balances in its Statement of financial position. The division is considered to be a cash generating unit. Carrying amount £’000 Goodwill 640 Plant 1,000 Building 2,260 Intangible assets 800 4,700 A decline in business due to COVID has caused Jersey to conduct an impairment review. The recoverable amount is found to be £3.7million. A recent valuation of the building found it had a market value of £2.5m. To the nearest thousand, what is the balance on the Intangible assets following the impairment review? a. £640k b. £630k c. £800k d. £729k

Jersey plc has a division with the following balances in its Statement of financial position. The division is considered to be a cash generating unit. Carrying amount £’000 Goodwill 640 Plant 1,000 Building 2,260 Intangible assets 800 4,700 A decline in business due to COVID has caused Jersey to conduct an impairment review. The recoverable amount is found to be £3.7million. A recent valuation of the building found it had a market value of £2.5m. To the nearest thousand, what is the balance on the Intangible assets following the impairment review? a. £640k b. £630k c. £800k d. £729k

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter12: Auditing Long-lived Assets And Merger And Acquisition Activity

Section: Chapter Questions

Problem 28RQSC

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