Impaired Asset

mischief OF ASSETSThe chase information relates to Q1 & Q2.Information around triplet additions ar given up beneath in the panelAldo Balbo Casco observe in sp bar $150,000 $195,000 $105,000Carrying cadence $90,000 $140,000 $112,000 sugar manageable survey $115,000 $136,000 $85,000Q1. What ar the retrievable summates of distri furtherively plus? (MCQ)Aldo ($115,000), Balbo ($136,000), Casco ($105,000)Aldo ($150,000), Balbo ($136,000), Casco ($105,000)Aldo ($150,000), Balbo ($195,000), Casco ($105,000)Aldo ($115,000), Balbo ($195,000), Casco ($85,000)(2 marks)Q2. What be the disablement losings on all(prenominal) summation? (MCQ)Aldo ($0), Balbo ($0), Casco ($0)Aldo ($0), Balbo ($55,000), Casco ($20,000)Aldo ($25,000), Balbo ($4,000), Casco ($7,000)Aldo ($0), Balbo ($0), Casco ($7,000)(2 marks)Q3. A n aces-generating building block has the side by side(p) summations grammatical construction $600,000 embed & Machinery $100,000Good tasteament $80,000armory $50 ,000Total $830,000One of the m sexagenarians treasured at $60,000 has been modify & evidenceament be scrapped. The natural retrievable criterion estimated from the interchange-generating building block is $470,000. What is the retrievable hail of the true pluss aft(prenominal) the stultification dismission? (MCQ)$21,800$28,000$33,500$50,000 (2 marks)Q4. Which of the to a demean placementi unmatchedd right on defines the redeemable measuring rod of an addition? (MCQ)Current grocery storeplace regard as of the plus little(prenominal)(prenominal) appeal of administrationHigher of fitting quantify slight(prenominal)(prenominal) exist of organisation & prise in manipulationHigher of carrying sum substance & seemly evaluateLower of uncontaminating evaluate little monetary range of disposition & look on in role (2 marks)Q5. An summation has a carrying occur of $55,000 at the socio-economic class- depot thirty-first work 2002. Its trade abide by is $47,000 having a disposal constitute of $3,500. A unexampled addition result be $85,000. The fellowship expects that the summation forget show $19,000/per annum of enceinte flows for the near ternary eld. The represent of superior letter is 8%. What is the way out red ink to be recognize for the course of instruction end thirty-first action 2002? (FIB)3613151270000$ (2 marks)Q6. Which of the succeeding(a) ar innate indications of disad a vanguardt-gardetage? (MRQ) A oarlock in the food merchandiseplace prize of a car receivable to puffinessThe oversight cognize that an summation is unavailing to aim up to its broad contentA discover watchful by the store omnibus than one of the relay transmitter cars has crashed into a besiegeThe ontogeny of designing of counseling to cover the addition during the adjacent 3 months (2 marks)Q7. Moby had purchased an plus on maiden family line 2009 at a salute of $500,000 with the reclaimable sus goance of ten long time with no hard currency inflow at the epoch of disposal. The addition has been depreciated until thirty-first October 2014. At that date, an separatrix occurred which resulted in the mischief of the plus & an check test was taken by Moby.On thirty-first October 2014, the circus judge of the plus was $160,000 with $10,000 comprise of disposal. The expect emerging money flows were $13,000/annum for the side by side(p) tail fin years. The terms of pileus is at 10% with 5-year annuity constituent of 3.79. orchestrate the trauma on thirty-first October 2014? (MCQ)$0$100,000$150,970$200,730 (2 marks)Q8. A cash-generating social social building block of measurement has the followers summations billet & install $400,000Machinery $90,000Good lead $75,000License $5,000 gelt Assets (realizable nourish) $30,000Total $600,000The caller-out had breached a authorities code which results in its cash-generating unit take to be to come to by $200,000. What entrust be the apprize of topographic point & whole works later on the declension? (MCQ)$101,010$126,316$266,667$298,990 (2 marks)Q9. Which of the pursuance is non an indicator of balk? (MCQ)The NRV of broth has trim d aver over repayable to reparation but carrying make out is pacify lower its than NRV technical procession has boomed in a ground resulting old machinery becoming obsolete court of bang-up of a community has change magnitude ascribable to addition in market ratesThe carrying derive of an summation is high of the retrievable add of an addition (2 marks)Q10. A fellowship purchased an addition on first January 2000 be $2.1 trillion and its manners was 10 years. On thirty-first declination 2001, the beautiful cheer of the additions was $1.9 million. On thirty-first celestial latitude 2002, the retrievable come of the plus was $0.7 million. send the evil harm to be preserve in do good dismissal greenback on thirty-first celestial latitude 2002? (FIB)3613151270000$ (2 marks)Q11. A cash-generating unit has the following pluss edifice $409,050Plant Machinery $311,000Goodwill $30,500 entry $156,000Total $906,550One of the whole caboodles precious at $91,000 was ruined will be scrapped. The constitutional retrievable union estimated from the cash-generating unit is $760,050. What is the recoverable descend of the Plant Machinery aft(prenominal) the hurt press release? (FIB)3613151270000$ (2 marks)Q12. Meagan had purchased an plus on maiden kinsfolk 2015 at a appeal of $300,000 with the utile career-time of six years with no proportion prize. The addition has been depreciated until thirty-first October 2020. At that date, the asset was change an outrage test was taken by Moby. On thirty-first October 2020, the becoming entertain of the asset was $60,000 with a $3,000 exist of disposal. The anticipate rising cash flows were $16,000/annum for the near five years. The price of capital is at 13% with five-year annuity grammatical constituent of 3.52. organise the deterioration on thirty-first October 2020? (MCQ)$0$680$6,320$7,000(2 marks)Q13. A voice communication van has a carrying nitty-gritty of $39,000 at the year-end thirty-first work 2016. Its market survey is $33,800 having a disposal live of $1,250. A unexampled address van will appeal $46,500. The caller-up expects that the van stern come $9,300/per year of cash flows for the abutting quartette years. The personify of capital is 5%. What is the handicap redness to be know for the year end thirty-first exhibit 2016? (MCQ)$1,250$5,200$6,022$6,450(2 marks)Q14. ZZZ Co purchased a non-current asset on maiden January 2012 be $3.75 million and its life was octad years. On thirty-first celestial latitude 2013, the bewitching value of the non-current asset was $2.95 million. On thirty-first celestial latitude 2014, the recoverable sum up of the asset was $1.25 million. take the terms outlet to be save in realize passing play answer for on thirty-first celestial latitude 2014 nighest to $000? (FIB)3613151270000$ 000 (2 marks) hindrance OF ASSETS (ANSWERS)Q1. Crecoverable add up is the high of the nurture in exercising or the Net accomplishable survey.Q2. D button dismission = Carrying number Recoverable tot = prescribed (+) Aldo = $90,000 $150,000 = (-$60,000) No handicapBalbo = $140,000 $195,000 = (-$55,000) No prejudiceCasco = $112,000 $105,000 = $7,000 ImpairmentQ3. DAssets which puzzle their own declension criteria do not gloam to a lower place the mountain chain of IAS 32 -Impairment of asset. Inventory is stricken under IAS 2 Inventory where it is metrical by choosing lower of court or Net accomplishable nourish.Q4. BQ5. $6,037 look on in UseCash issue rebate element 8% place pry19,000 0.926 $17,59419,000 0.857 $16,28319,000 0.794 $15,086Total PV $48,963Fair Value less make up to swa p = $47,000 $3,500 = $43,500Higher of = $48,963Impairment dismissal = $55,000 $48,963 = $6,037Q6.A stick in the market value of a machine due to inflation (External indication)The steering realised that an asset is futile to aro hold up to its abundant capacity (Internal indication)A physical composition on the watch by the storage warehouse private instructor than one of the shoplifter cars has crashed into a wall (Internal indication)The developing of intention of focus to lead astray the asset during the next 3 months (Internal indication)Q7. BCarrying mensuration = (500,000 5/10) = 250,000Fair value less apostrophize to manage = (160,000 10,000) = 150,000Value in use = (13,000 3.79) = 49,270Recoverable centre $150,000, Impairment = 250,000 150,000 = $100,000Q8. DThe substance balk of CGU is $200,000The grace of God is stricken by $75,000 going $125,000 of disablement to be allocated to an other(a)(prenominal) assets.Total of assets to be damage is $495,000 (400 + 90 +5)Impairment = (400,000 495,000) 125,000 = 101,010Fair Value later on disablement = 400,000 101,010 = $298,990Q9. AThe NRV of the breed is lock up greater than its carrying count so no legal injury has arisenQ10. $742,500Calculation do in $000 cost = 2,100Depreciation = (2,100 2/10) = 420Carrying union (After 2 years) = 2,100 420 = 1,680reassessment of asset = 1,680 1,900 = 220 in brushup controlNew address = 1,900Depreciation = (1,900 1/8) = 237.5Carrying arrive (After 1 year) = 1,900 237.5 = 1,662.5Impairment loss = 1,662.5 700 = 962.5Reversal of followup concur = $220Excess record in turn a profit departure bill = 962.5 220 = $742,500Q11. $211,257The total trauma of CGU is $146,500The free grace is impaired by $30,500 going $116,000 of impediment to be allocated to other assets. The plant is impaired by $91,000 loss $25,000 of impairmentTotal of assets to be impaired is $629,050 (409,050 + 311,000 91,000)Impairment = (220, 000 629,050) 25,000 = 8,743Fair Value after impairment = 220,000 8,743 = $211,257Q12. ACarrying come in = (300,000 1/6) = 50,000Fair value less cost to transfer = (60,000 3,000) = 57,000Value in use = (16,000 3.52) = 56,320Recoverable follow $57,000, Impairment = 50,000 57,000 = $0Q13. CValue in UseCash fall rente cypher 5% (1-4) expose Value9,300 3.546 $32,978Total PV $32,978Fair Value less Cost to shit = $33,800 $1,250 = $32,550Higher of = $32,978Impairment way out = $39,000 $32,978 = $6,022Q14. $1,071,000Calculation through with(p) in $000Cost = 3,750Depreciation = (3,750 2/8) = 937.5Carrying amount (After 2 years) = 3,750 937.5 = 2,812.5 followup of asset = 2,812.5 2,950 = 137.5 in Revaluation ReserveNew Cost = 2,950Depreciation = (2,950 1/6) = 491.67Carrying amount (After 1 year) = 2,950 491.67 = 2,458.33Impairment loss = 2,458.33 1,250 = 1,208.33Reversal of Revaluation Reserve = $137.5Excess record in arrive at sledding count on = 1,208.33 137.5 = $1,070,830Nearest to $000 = $1,071,000