Compute the reversal of impairment loss

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Reference no: EM133155715

Question - On 30 June 2018, HTL Bhd classifies a business segment as a disposal group for sale. The carrying amount and the impairment loss recognised are as follows:

 

Before RM' million

Impairment RM' million

After RM' million

Goodwill allocated

50

(950)

-

Property, at revalued amount

80

(13.3)

66.7

Plant and equipment, at cost

100

(16.7)

83.3

AFS investment at fair value

40

-

40

Other monetary assets

30

-

30

Net amount

300

(80)

220

On 31 December 2018, the fair value of the AFS investment increase to RM45m. On this date, HTL Bhd signs an agreement with a third party to dispose of the business for a consideration of RM240m. Costs to sell are estimated at 3% of the consideration.

Required - Compute the reversal of impairment loss that shall be recognised on 31 December 2018.

Reference no: EM133155715

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