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