User Account

All Pages

Determine the carrying value of each asset in cgu for year

Assignment Help Financial Accounting
Reference no: EM132962031

The carrying value of a Cash Generating Unit (CGU) as at 1 January 2017 was as follows:

Buildings 500,000

Machinery 300,000

Plants 400,000

Goodwill 100,000

  • It is the policy of the company to depreciate its CGU over the useful life of the assets (except goodwill) which is 25 years. The remaining useful life of the CGU as at 1 January 2017 was 20 years.
  • During the year 2019, demand for the company's product dropped quite significantly. It was estimated that on 31 December 2019, the recoverable amount of the CGU was RM800,000.
  • For the year 2020, due to some aggressive promotion, the demand for the product increased. The fair value of the CGU was RM950,000. The cost to sell was 5% of the fair value. The expected future cash flows from the CGU on its continuing use was RM900,000.

Required

Problem 1: Determine the carrying value of each asset in the CGU for the year ended 31 December 2019 and 31 December 2020

Problem 2: Determine the amount of impairment loss or reversal of impairment loss for the year ended 31 December 2020

Reference no: EM132962031

Questions Cloud

Evaluate benefits programs : Which of the following is NOT one of the HR metrics used to assess and evaluate benefits programs?
Assumptions about biracial-multiracial persons : -Analyze your values, biases, and assumptions about biracial/multiracial persons. Identify any challenges you might experience when working with these groups.
What is the objective of internal analysis : What is the objective of internal analysis? Describe in detail.
Personal view on unions and union representation : What is your personal view on unions and union representation? Why do you think workers want unions in the first place, and why do employers resist them so stau
Determine the carrying value of each asset in cgu for year : The carrying value of a Cash Generating Unit, Determine the carrying value of each asset in the CGU for the year ended 31 December 2019 and 31 December 2020
Which of the components would be part of the company entry : Which of the components would be part of the company's entry on the date of declaration? Norplast Inc had 200,000 common shares outstanding on January 1.
Compute the total variable costs for a three-ton load : The landfill has sufficient capacity to operate for at least the next 20 years. Compute the total variable costs for a three-ton load
Advise the board of directors on the two methods mentioned : Advise the board of directors on the two methods mentioned above. Your arguments should also include the arguments for and against on each method
How much is the gain or loss on disposal : On October 1, 2023 Jim sell the truck for 15,000. How much is the gain or loss on disposal? On March 31, 2020 Jim purchased a truck for 50,000 cash.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd