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Calculate the amount of impairment loss allocated to assets

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Reference no: EM132699260

ABC Ltd has determined that one of its cash-generating units (CGUs) has sustained an impairment loss of $50 000. The carrying amount of the assets within the CGU are as follows.

Asset 1        150,000
Asset 2        200,000
Asset 3          50,000
Total             400,000

The estimated fair value less costs of disposal of Asset 2 is $190 000, which is greater than its value in use.

Required

Problem 1: In accordance with IAS 16 Property, Plant and Equipment and IAS 36 Impairment of Assets, calculate the amount of impairment loss allocated to the three assets, and the carrying amounts of the assets after the allocation. Prepare relevant journal entries. Show workings and calculations.

Reference no: EM132699260

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