Reference no: EM132623597

Problem 1: Parkes Limited recognised an impairment loss of $20 000 against a cash-generating unit containing the following assets: buildings $50 000; roads $110 000; equipment $40 000. The net carrying amount of the roads after allocation of the impairment loss is:

a) $99,000

b) $90,000

c) $45,000

d) $36,000

Problem 2: For the purposes of recognising property, plant and equipment assets the acquisition date is the date:

a) the contract to exchange assets is signed

b) on which the acquirer obtains control of the asset.

c) the consideration is paid

d) on which the contract to acquire the asset becomes unconditional.