Hello Christopher, I am thankful for this class as well as the other classes they have been very helpful. Thank you Christopher and the Open Tuition team, God bless you all. Out of curiosity; 1) Should the new carrying value after impairment of buildings be used to calculate the next year's depreciation? 2) If the total value of buildings were scrapped out while allocating impairment should buildings be written off from the accounts? If yes, how? 3) Also if the total value of buildings were scrapped out while allocating impairment and some impairment still remains can Plant & Equipment be further impaired? Thank you again for being available.
Outspan Holdings (Out-Span) holds 100% interest in City-Bolts Ltd (City-Bolts). City-Bolts has a business unit that manufactures and sells bolts in Belmont, Bulawayo. The assets used in the business unit qualify to be a Cash Generating Unit (CGU). The following information relates to the carrying amounts of assets at 31 December 2019. $ Machinery 33 600 Equipment 36 000 Furniture 50 400 Goodwill 30 000 150 000 At the same date there were indications that the business unit might have been impaired. The only fair value less costs to sell of individual asset where an active market was available was furniture and its fair value amounted to $45 600 net of costs to sell. A professional valuer estimated the value in use of the business unit at $ 98 400 and the fair value less costs to sell the whole at $84 000. How about is one
