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Diva Ltd has an item of equipment with a carrying amount of $110000 (cost $150000 less accumulated depreciation $40000).

Posted: Fri Jul 01, 2022 8:21 am
by answerhappygod
Diva Ltd has an item of equipment with a carrying amount of$110000 (cost $150000 less accumulated depreciation $40000). thefollowing data has been obtained by Diva in relation to theasset;
estimated fair value of the asset less costs of disposal -$90,000
present value of future cash flows expected to be derived fromthe asset $70000
To account for the impairment loss, the accountant for Diva isconsidering a number of accounting entries.
In accordance with IAS 16 Property, Plant and Equipment and IAS36 impairment of assets, prepare an entries to recognize theimpairment loss?
Pls ASAP, its urgent i hv only 30 mins