Sumit Ltd reported the following assets in its statement of financial position at 30 June 2021: Land 25,000 Patent 100,000 Plant 250,000 Accumulated Depreciation (75,000) Goodwill 20,000 Inventory 40,000 Accounts receivables 30,000 Cash 5,000 Accounts payables 20,000 The recoverable amount of the entity was calculated to be $354,000. All assets are measured using the cost method. Inventory is measured at the lower of cost and net realisable value in accordance with AASB102 Inventories. The receivables were all considered to be collectable. Required: 1. Allocate the impairment loss to assets in the CGU as per AASB136 (Please round off to the nearest dollar). 2. Prepare journal entries to record the allocation of the impairment loss at 30 June 2021. Descriptions/Narrations are NOT required. Asset Carrying Amount Proportion Allocation of Loss Adjusted Carrying Amount DATE DESCRIPTION DR CR
Sumit Ltd reported the following assets in its
|
Land |
25,000 |
|
Patent |
100,000 |
|
Plant |
250,000 |
|
|
(75,000) |
|
|
20,000 |
|
Inventory |
40,000 |
|
Accounts receivables |
30,000 |
|
Cash |
5,000 |
|
Accounts payables |
20,000 |
The recoverable amount of the entity was calculated to be $354,000.
All assets are measured using the cost method. Inventory is measured at the lower of cost and net realisable value in accordance with AASB102 Inventories. The receivables were all considered to be collectable.
Required:
1. Allocate the impairment loss to assets in the CGU as per AASB136 (Please round off to the nearest dollar).
2. Prepare
|
Asset |
Carrying Amount |
Proportion |
Allocation of Loss |
Adjusted Carrying Amount |
|
DATE |
DESCRIPTION |
DR |
CR |
|---|---|---|---|
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