Exam 11: Impairment of Assets

Hayfield Limited recognised an impairment loss of $200 against a cash-generating unit containing the following assets: Buildings $500; Roads $300; Equipment $600.The net carrying amount of the Roads after allocation of the impairment loss is:

Nguyen Limited estimated that it would receive future cash flows from the use of equipment: -End of Year 1 $10 000 -End of Year 2 $50 000 -End of Year 3 $20 000 The discount rate was determined as 8%.The 'value in use' of the equipment is:

In relation to the impairment of assets,AASB 136 Impairment of Assets,requires the following disclosures for each class of assets: I The line of the income statement in which impairment losses are included. II The amount of reversals of impairment losses during the period. III The amount of impairment losses recognised directly in equity. IV The beginning and ending balances of any 'provision for impairment' account.

When an asset is measured using the revaluation model,any impairment loss is treated as:

An appropriate journal entry to recognise an impairment loss under the cost model is: