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Explain how chancer plc should account for asset r

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Reference no: EM132742120

You are the financial controller of Chancer plc, a company that prepares its financial statements to 31 December each year. The following issues need to be resolved before the financial statements for the year ended 31 December 2019 can be finalised.

Issue 1:
Chancer plc is undertaking an impairment review of assets, with investigations uncovering the following:

  1. Asset R has a carrying amount of £60,000, a value in use of £65,000 and a fair value less costs of disposal of £30,000; and
  2. Asset S has a carrying amount of £100,000, a value in use of £92,000 and a fair value less costs of disposal of £95,000.

Requirement

Problem 1: Explain how Chancer plc should account for Asset R and Asset S in its financial statements for the year ended 31 December 2019 in accordance with extant international financial reporting standards.

Reference no: EM132742120

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