What amount of impairment loss should be recorded, Accounting Basics

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What amount of impairment loss should be recorded

Numa has been experiencing declining market conditions for its sports wear division. Management decided to test the operational assets of the division for possible impairment. The test revealed the following: book (carrying) value of division's assets, $26.5m, fair value less costs to sell, $21m, PV of future cash flows, $28m. Based on FRS 36, what amount of impairment loss should Numa record?

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Accounting Basics: What amount of impairment loss should be recorded

Reference No:- TGS0555106

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Recent Questions Asked Accounting Basics

Q : The company was on sound financial footing

Q : Create the appropriate journal entries to record any amounts

Q : Example of achange in accounting principle

Q : Change in estimate

Q : What amount of impairment loss should be recorded

Q : Determine the revenues in balance sheet accounts

Q : Compare and contrast the primary restrictions

Q : Cost flow assumptions

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Request for Solution File

Ask an Expert for Answer!!

Accounting Basics: What amount of impairment loss should be recorded

Reference No:- TGS0555106

Recent Questions Asked Accounting Basics

Q : The company was on sound financial footing

Q : Create the appropriate journal entries to record any amounts

Q : Example of achange in accounting principle

Q : Change in estimate

Q : What amount of impairment loss should be recorded

Q : Determine the revenues in balance sheet accounts

Q : Compare and contrast the primary restrictions

Q : Cost flow assumptions

Q : Discuss the difference between personal property

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