The CGU’s impairment loss then must beallocatedto the individual assets. So, if you calculated the impairment loss for the whole pizzeria, then you must allocate this loss to its individual assets, including the pizza oven :). How to account for impairment loss? Ifa cost modelis applied, ...
If the carrying amount is greater than the recoverable amount, then you need to recognize theimpairment loss. However, as the impairment loss relates to many assets within your CGU, you need to allocate it as follows: First, you reduce any goodwill to zero; If there’s some impairment loss...
Revaluation model:The intangible asset is carried at its fair value at the revaluation date less accumulated amortization less any accumulated impairment loss. Let me just add that the revaluation model is not applied very frequently for intangible assets because there must be an active market – wh...
impairment loss of $1·8 million had occurred at 31 October 2005. The tax base of the property, plant and equipment of Nails was $4 million as at 31 October 2005. The directors wish to know how the impairment loss will affect the deferred tax provision for the year. Impairment losses ar...
impairment loss of 1·8 million had occurred at 31 October 2005. The tax base of the property, plant and equipment of Nails was $4 million as at 31 October 2005. The directors wish to know how the impairment loss will affect the deferred tax provision for the year. Impairment losses are...
The most essential concept for a child's development is to provide him or her with "lovely childhood memories" so that he or she may build a safe and strong foundation for the future. Answer and Explanation:1 Become a Study.com member to unlock this answer!Create your account ...
How to calculate depreciation on profit and loss statement? How to record journal entries for depreciation using the sum of year method? How is the impairment of an investment classified as "held-to-maturity" dealt with in the book of accou...
Financial Instrumentsrequires companies to measure impairment of financial assets, including trade receivables, using the expected credit loss model. Accordingly, companies are required to account for what they expect the loss to be on the first reporting date after they raise the invoice – and they...
How to account for compound financial instruments Before outlining the accounting treatment let me stress that the accounting treatment in issuer’s financial statements significantly differs from accounting treatment in holder’s financial statements. ...
Calculating Impairment Loss The first step is to identify the factors that lead to an asset's impairment. Some factors may include changes in market conditions, new legislation or regulatory enforcement,turnoverin the workforce ordecreased asset functionalitydue to aging. In some circumstances, the a...