Brighton Shores Plc Has a Cash Generating Unit (CGU)and Has

question 52

Multiple Choice

Brighton Shores Plc has a cash generating unit (CGU) and has been assessed for impairment and it has determined an impairment loss of £100 000. The following information relates to the assets as at 30 June 2014. $$\begin{array} { | l | r | r | } \hline & \text { Carrying amount } & \text { Recoverable amount } \\\hline \text { Buildings } & 800000 & 900000 \\\hline \text { Equipment } & 200000 & 150000 \\\hline \text { Goodwill } & 50000 & \\\hline\end{array}$$ In accordance with IAS 36 Impairment of Assets what should be the carrying amount of buildings as at 30 June 2014?

• A)£720 000
• B)£760 000
• C)£800 000
• D)£900 000

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Definitions:

Used Car Market

The segment of the automotive market that deals with the sale and purchase of pre-owned vehicles.

Declining Quality

The phenomenon where the standard or grade of a product, service, or overall condition deteriorates over time, potentially affecting customer satisfaction and market position.

Deductible Amount

The portion of a claim that a policyholder must pay out of pocket before the insurance covers the remaining costs.