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A cash generating unit (CGU) consist of the following assets:
| | Carrying amount |
| Goodwill | 500 |
| Plant | 10,000 |
| Vehicle | 8,000 |
| Land | 25,000 |
| CA of CGU | $43,500 |
The recoverable amount of the CGU is determined at $45,000. The CGU was impaired in prior years.
The recoverable amount of individual asset is as follows:
| Plant | 10,500 |
| Vehicle | 9,000 |
| Land | 25,900 |
Required: Prepare journal entries to account for the reversal of impairment of the CGU in accordance with IAS 36 Impairment of Assets.
Answer:
| Dr | Acc depr and impairment loss- plant | 349 | |
| Cr | Reversal of impairment (income) | | 349 |
| | (reversal of impairment loss of plant) | | |
| Dr | Acc depr and impairment loss- vehicle | 279 | |
| Cr | Reversal of impairment (income) | | 279 |
| | (reversal of impairment loss of vehicle) | | |
| Dr | Acc depr and impairment loss- land | 872 | |
| Cr | Reversal of impairment (income) | | 872 |
| | (reversal of impairment loss of land) | | |
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