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The impairment loss is firstly used to write off the Goodwill. The balance of the loss is allocated across the other assets, except for
inventory assuming it is recorded at the lower of cost and net realisable value:
Therefore:
$141,000 - $47,000 = $ 94,000.00
So we have:
Net carrying amount of Plant Fair value - Cost of disposal of Plant
$848,643.14
< $882,882.00
Loftus, J., 2013. Understanding Australian accounting standards. Milton, Qld.: John
Wiley and Sons.
CPA Australia Ltd, 2011. IAS 16 Property, Plant and Equipment. Grant Thornton.
Duh, R., Lee, W. and Lin, C., 2009. Reversing an impairment loss and earnings
management: The role of corporate governance. The International Journal of
Accounting, 44(2), pp.113-137.
Cocco, A, & Moores, T 1995, 'Accounting for the impairment of long-lived assets', CPA
Journal, 65, 10, p. 24.
Cearns, K 1999, 'Impairment of Assets', Accountancy, vol. 123, no. 1266, pp. 94-95.