Reference no: EM132885806

Question - Determining recoverable amount and impairment adjustments - Consider the following information relating to five different items of plant and equipment at the reporting date.

Asset	Carrying amount $	Fair value $	Costs of disposal $	Value in use $
A	100,000	105,000	3,000	110,000
B	50,000	45,000	1,000	48,000
C	80,000	85,000	2,000	82,000
D	200,000	190,000	5,000	220,000
E	120,000	120,000	3,000	115,000

Required -

1. Calculate the recoverable amount for each of the five items of plant and equipment.

2. Assuming plant and equipment is carried under the cost model, determine the amount of any impairment adjustment necessary.

3. Assuming plant and equipment is carried under the revaluation model, determine the amount of any revaluation adjustment necessary.