Reference no: EM132615632

Blossom Ltd has classified a group of assets and liabilities as a disposal group. The criteria for reclassification as a disposal group were met on 1 July 2019.

The assets were measured immediately before classification in accordance with their respective accounting standards:

                                          Carrying Amount                      Recoverable Amount

                                                     N$                                     N$

Investment property @ fair value         60,000

Property plant and equipment            150,000                                150,000

Inventory                                     50,000                                  NRV 50,000

Investment property cost model            50,000                            60,000

Goodwill                                            30,000

Trade payable                                       10,000

The fair value less cost to sell of the disposal group on 1 July 2019 is N$230 000.

Required:

Problem 1: Calculate the impairment loss and allocate to the disposal group.

Problem 2: Journalise the impairment loss