A company has seven assets (labelled 1 to 7) for which there are indications of...
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A company has seven assets (labelled 1 to 7) for which there are indications of possible impairment. The carrying amount, fair value less costs of disposal and value in use for each asset are as shown below. Carrying Amount Fair Value less costs of disposal Value in use $ $ $ Asset 1 60,000 72,000 108,000 Asset 2 66,000 54,000 78,000 Asset 3 42,000 69,000 n/d Asset 4 51,000 39,000 42,000 Asset 5 76,500 n/d 100,800 Asset 6 60,000 84,000 72,000 Asset 7 126,000 90,000 60,000 Note: n/d = not determined Required: a. Calculate the amount of any impairment loss arising in relation to each asset (Show Recoverable Amount) (7 marks) b. Briefly describe how impairment loss is determined. (1 mark) c. Briefly explain how you determined if there was an impairment loss for assets
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