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Question - Adelaide Ltd reported the following assets in its statement of ?nancial position at 30 June 2020.
Plant $500,000
Accumulated depreciation - plant (100,000)
Land 300,000
Inventories 150,000
Cash 50,000
At 30 June 2020, Adelaide Ltd analysed the internal and external sources of information that would indicate deterioration in the worth of its assets and determined that there were indications of impairment. The recoverable amount of their assets, considered to be a single CGU, was calculated to be $800,000.
Required - Prepare the journal entries for any adjustments relating to impairment on 30 June 2020.
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