Reference no: EM132713847

Last Ltd has two divisions, Time and Leisure. Each of these is regarded as a separate CGU.
At 31 December 2019, the carrying amounts of the assets of the two divisions were:

                                                         Time               ??Leisure
Plant                                    $1,440        ??$1,140?
Accumulated depreciation??             (620?)?          (360)
Patent 240???
Inventories                                    46??             70?
Receivables                                     76         ?? 80?
Goodwill??                                          20??           24?

The receivables were regarded as collectable, and the inventories' fair value less costs of disposal was equal to its carrying amount. The patent had a fair value less costs of disposal of $205. The plant at Time was depreciated at $280 p.a., and that at Leisure was depreciated at $210 p.a.

Last Ltd undertook impairment testing at 31 December 2019, and determined the recoverable amounts of the two divisions to be:

Time??$1,002
Leisure 938

As a result, management increased the depreciation of the Time plant from $280 to $310 p.a. for the year 2020.

By 31 December 2020, the performance in both divisions had improved, and the carrying amounts of the assets of both divisions and their recoverable amounts were as follows:

                                           Time?                Leisure
Carrying amount??           $1,280?               $1,385
Recoverable amount       1,420?                   1,472

Problem (a) Calculate the impairment loss for Last Ltd for the year ended 31 December 2019.