Problem - Sun Ltd reported the following assets in its statement of financial position at 30 June 2015:
Plant $2,300,000
Accumulated depreciation (600,000)
Land 550,000
Franchise license 300,000
Equipment 900,000
Accumulated depreciation (340,000)
Inventory 220,000
Cash and cash equivalents 180,000
$3,510,000
The recoverable amount of the entity was calculated to be $2,900,000. The fair value less costs of disposal of the land was $388,000.
The journal entry to record the impairment loss of the cash generating unit at 30 June 2015 is as follows:
Dr. Impairment loss expense XXX
Cr. Accumulated depreciation - Plant YYY
Cr. Land AAA
Cr. Accumulated amortisation - License BBB
Cr. Accumulated depreciation - Equipment CCC
1. What is the amount of YYY? (Answer includes the effect of second-time impairment loss from Land)
2. Impairment of land
3. Second time impairment of loss re-appointment between the remaining non-current asset.