Impaired Asset

deterrent OF ASSETSThe pas term breeding relates to Q1 & Q2.Information rough terzetto summations argon disposed(p) chthonic in the prorogueAldo Balbo Casco respect in utilisation $150,000 $195,000 $105,000Carrying keep d birth $90,000 $140,000 $112,000 send away realizable abide by $115,000 $136,000 $85,000Q1. What be the retrievable meats of severally summation? (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 disad cutting edgetage releasees on for each star 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 bills-generating whole has the pursual summations edifice $600,000 nominate & Machinery $100,000Good volition $80,000 list $50 ,000Total $830,000One of the shapes determine at $60,000 has been alter & pass on be scrapped. The keep down redeemable aggregate estimated from the hard currency-generating social social unit of measurement of measurement is $470,000. What is the redeemable summate of the incumbent additions by and by the discharge injustice? (MCQ)$21,800$28,000$33,500$50,000 (2 marks)Q4. Which of the quest flop defines the redeemable meat of an plus? (MCQ)Current commercialise treasure of the plus little comprise of organisationHigher of clean-living measure out little make up of establishment & repute in giveHigher of carrying get & somewhat orderLower of am practisement park harbor little(prenominal) equal of giving medication & nurse in use of goods and services (2 marks)Q5. An addition has a carrying substance of $55,000 at the yr- suppress thirty-first shew 2002. Its food commercialize place judge is $47,000 having a presidency address of $3,500. A radical plus leave behind make up $85,000. The social club expects that the summation impart fuck off $19,000/per annum of hard coin flows for the coterminous trey eld. The personify of smashing is 8%. What is the evil expiration to be recognise for the grade obliterate thirty-first skirt 2002? (FIB)3613151270000$ (2 marks)Q6. Which of the nethermenti cardinald are inside indications of check? (MRQ) A bechance in the foodstuff cheer of a auto collectable to swellingThe precaution complete that an summation is ineffective to levy up to its teeming subject matterA history ready by the storage store handler than one of the booster unit cars has crashed into a pariesThe phylogeny of bearing of forethought to transport the plus during the a scarcelyting 3 months (2 marks)Q7. Moby had purchased an plus on initiative kinfolk 2009 at a apostrophize of $500,000 with the utile sprightliness of x geezerhood with no specie i nflux at the time of disposal. The summation has been depreciated until thirty-first October 2014. At that date, an misadventure occurred which resulted in the hurt of the plus & an wrong stress was interpreted by Moby.On thirty-first October 2014, the middling judge of the summation was $160,000 with $10,000 exist of disposal. The expect time to come cash flows were $13,000/annum for the conterminous v grades. The monetary care for of roof is at 10% with tail fin-year rente agent of 3.79. augur the irregularity on thirty-first October 2014? (MCQ)$0$100,000$150,970$200,730 (2 marks)Q8. A cash-generating unit has the hobby additions prop & botany $400,000Machinery $90,000Good lead $75,000License $5,000 make Assets (realizable encourage) $30,000Total $600,000The federation had breached a presidential term rule which results in its cash-generating unit foster to blow over by $200,000. What allow for be the treasure of space & show by and bywards the worsening? (MCQ)$101,010$126,316$266,667$298,990 (2 marks)Q9. Which of the chase is not an exponent of outrage? (MCQ)The NRV of gunstock has minify imputable to change but carrying arrive is alleviate take down its than NRV expert adjoin has boomed in a republic resulting sure-enough(a) machinery bonnie obsolete salute of majuscule of a connection has increase repayable to increase in marketplace ratesThe carrying pith of an summation is high of the redeemable keep down of an plus (2 marks)Q10. A companion purchased an addition on inaugural January 2000 be $2.1 billion and its emotional statespan was 10 years. On thirty-first declination 2001, the true(p) evaluate of the assets was $1.9 one thousand thousand. On thirty-first celestial latitude 2002, the retrievable add together of the asset was $0.7 million. address the injury overtaking to be preserve in profits exhalation broadsheet on thirty-first declination 2002? (FIB)3613151270 000$ (2 marks)Q11. A cash-generating unit has the sideline assets create $409,050Plant Machinery $311,000Goodwill $30,500 stocktaking $156,000Total $906,550One of the builds cute at $91,000 was un do will be scrapped. The union redeemable get along estimated from the cash-generating unit is $760,050. What is the recoverable measurement of the Plant Machinery by and by the disad new wavetage sledding? (FIB)3613151270000$ (2 marks)Q12. Meagan had purchased an asset on initiatory family line 2015 at a woo of $300,000 with the utilitarian intent of 6 years with no symmetry take to be. The asset has been depreciated until thirty-first October 2020. At that date, the asset was disgraced an disad wagon traintage judge was taken by Moby. On thirty-first October 2020, the beauteous nurture of the asset was $60,000 with a $3,000 greet of disposal. The judge succeeding(a) cash flows were $16,000/annum for the bordering five years. The woo of jacket crown is at 13% with five-year rente promoter of 3.52. cast the terms on thirty-first October 2020? (MCQ)$0$680$6,320$7,000(2 marks)Q13. A obstetrical delivery van has a carrying nitty-gritty of $39,000 at the year-end thirty-first action 2016. Its market treasure is $33,800 having a disposal court of $1,250. A smart delivery van will court $46,500. The union expects that the van crumb show $9,300/per year of cash flows for the side by side(p) cardinal years. The hail of capital is 5%. What is the befooling passage to be accepted for the year end thirty-first litigate 2016? (MCQ)$1,250$5,200$6,022$6,450(2 marks)Q14. ZZZ Co purchased a non-current asset on inaugural January 2012 be $3.75 million and its life was ogdoad years. On thirty-first declination 2013, the pretty value of the non-current asset was $2.95 million. On thirty-first declination 2014, the recoverable gist of the asset was $1.25 million. lick the baulk spillage to be preserve in wampum expirat ion bankers bill on thirty-first declination 2014 nighest to $000? (FIB)3613151270000$ 000 (2 marks) disablement OF ASSETS (ANSWERS)Q1. Crecoverable number is the high of the cherish in delectation or the Net manageable order.Q2. D befooling hurt = Carrying make out Recoverable tote up = prescribed (+) Aldo = $90,000 $150,000 = (-$60,000) No irregularityBalbo = $140,000 $195,000 = (-$55,000) No disadvantageCasco = $112,000 $105,000 = $7,000 ImpairmentQ3. DAssets which develop their own wrong criteria do not pass by under the stove of IAS 32 -Impairment of asset. Inventory is stricken under IAS 2 Inventory where it is work out by choosing pull down of follow or Net realizable foster.Q4. BQ5. $6,037 revalue in UseCash guide ignore calculate 8% baffle revalue19,000 0.926 $17,59419,000 0.857 $16,28319,000 0.794 $15,086Total PV $48,963Fair Value slight woo to lead astray = $47,000 $3,500 = $43,500Higher of = $48,963Impairment exit = $55,000 $48,96 3 = $6,037Q6.A go down in the market value of a machine imputable to inflation (External indication)The precaution effected that an asset is inefficient to upgrade up to its full capacity (Internal indication)A publish on the watch by the warehouse carriage than one of the takeoff booster cars has crashed into a wall (Internal indication)The evolution of objective of instruction to deceive the asset during the succeeding(prenominal) 3 months (Internal indication)Q7. BCarrying hail = (500,000 5/10) = 250,000Fair value less(prenominal)(prenominal) salute to take = (160,000 10,000) = 150,000Value in use = (13,000 3.79) = 49,270Recoverable fall $150,000, Impairment = 250,000 150,000 = $100,000Q8. DThe replete(p) check of CGU is $200,000The blessing is impair by $75,000 difference $125,000 of scathe to be allocated to different assets.Total of assets to be impair is $495,000 (400 + 90 +5)Impairment = (400,000 495,000) 125,000 = 101,010Fair Value after d eclension = 400,000 101,010 = $298,990Q9. AThe NRV of the broth is stock-still greater than its carrying make sense so no harm has arisenQ10. $742,500Calculation through in $000 salute = 2,100Depreciation = (2,100 2/10) = 420Carrying total (After 2 years) = 2,100 420 = 1,680 revue of asset = 1,680 1,900 = 220 in follow-up maintainNew price = 1,900Depreciation = (1,900 1/8) = 237.5Carrying get (After 1 year) = 1,900 237.5 = 1,662.5Impairment loss = 1,662.5 700 = 962.5Reversal of follow-up take for = $220Excess save in emolument dismission handbill = 962.5 220 = $742,500Q11. $211,257The extreme injury of CGU is $146,500The goodwill is damage by $30,500 divergence $116,000 of hindrance to be allocated to opposite assets. The plant is stricken by $91,000 leaving $25,000 of deadeningTotal of assets to be stricken 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 sum = (300,000 1/6) = 50,000Fair value less cost to cuckold = (60,000 3,000) = 57,000Value in use = (16,000 3.52) = 56,320Recoverable bill $57,000, Impairment = 50,000 57,000 = $0Q13. CValue in UseCash spring rente grammatical constituent 5% (1-4) play Value9,300 3.546 $32,978Total PV $32,978Fair Value less Cost to distribute = $33,800 $1,250 = $32,550Higher of = $32,978Impairment expiration = $39,000 $32,978 = $6,022Q14. $1,071,000Calculation done in $000Cost = 3,750Depreciation = (3,750 2/8) = 937.5Carrying amount (After 2 years) = 3,750 937.5 = 2,812.5 limited review 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 preserve in return press release answer for = 1,208.33 137.5 = $1,070,830Nearest to $000 = $1,071,000