Impairments (IAS 36) - ACCA (SBR) lectures

[@mandywest703]

I enjoyed the video thank you. Just a note you forgot to cut out the section regarding the first attempt of the video.

[@TopCyrilForty]

Why did we not allocate the remaining impairment value of 3100 to the balance from plant after removing the 1,200 and the building.

[@mayankrajjha3818]

I have the same question too

[@mohammedadzim]

There are no other assets left other than buildings. Therefore the remaining $3100 is allocated to buildings only.

[@saurabhnaik7]

You cannot impair an asset below its RV, so as we have already brought p&m & patents to their RV we canot reduce them further and so building is the only asset that remains.

[@kostadin_ristovski]

@@saurabhnaik7 I do not think that his approach is correct. Yes, patents are brought to their FV as there is an offer, I do agree with that. However, nowhere does it state that the P&M's carrying amount of 4m is equal to the FV. My approach would be to split the remaining impairment of 3.1m between the buildings and P&M on pro-rata basis.

[@niharikaaredla5799]

@@kostadin_ristovski RV is different from the FV. Since the plant and equipment have been impaired by $1.2M, the recoverable amount of P&E is now $4M. An asset can not be impaired below its recoverable value. Since P&E are now at their RV, Other Intangibles brought down to their RV of $1.5M, Goodwill completely impaired, monetary items can't be impaired, the only remaining asset to be impaired is Buildings and hence the entire $3.1M is allocated against Buildings. If there was another asset then impairment on a pro rata basis would have been possible.

[@accountsdepartment4603]

Good day, why was the goodwill treated as an impairment item? Am not clear

[@accountsdepartment4603]

Never mind I see why I missed a part of the lecture. Thank you . Crystal clear.