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Impairment of assets - Ind AS36
Financial Reporting
Sir In this question they have given recoverable amount for Plant A is 600 crore Then why u noted such 600 under CGU coloum instead of impairment coloum As u told that when in a CGU consists of goodwill, group of assets indicates impairment then first we need to carry out impairment process for such individual assets And next for CGU consists goodwill Here u didn't tested the individual assets for impairment that is u didn't enter recoverable amount for Plant A
Answers (2)
his question involves the calculation of an impairment loss for a cash generating unit (CGU) in XYZ company, which consists of only one asset - Plant A. As per the company's balance sheet recorded on April 1st, 2021, the carrying amount of assets was 1000 crore, along with 200 crore in goodwill, bringing the total carrying amount of the CGU to 1200 crore. After accounting for depreciation, the carrying amount of Plant A is calculated to be 900 crore, with the remaining 200 crore accounted for by goodwill. When calculating the impairment loss, it is crucial to compare the total carrying amount of the CGU (which includes both Plant A and goodwill) with the recoverable amount of Plant A. It is worth noting that this comparison is not based solely on the carrying amount of Plant A, but on the total carrying amount of the CGU.
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