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

question 1

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 2012. $$\begin{array} { | l | r | r | } \hline & \text { Carrying amount } & \text { Recoverable amount } \\\hline \text { Buildings } & 800000 & 900000 \\\hline \text { Equipment } & 200000 & 150000 \\\hline \text { Goodwill } & 50000 & \\\hline\end{array}$$ In accordance with IAS 36 Impairment of Assets what should be the carrying amount of equipment as at 30 June 2014?

• A)£0
• B)£100 000
• C)£150 000
• D)£190 000

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Definitions:

Fed

The Federal Reserve System, which is the central banking system of the United States, responsible for monetary policy, banking supervision, and financial services.

Money Expansion

An increase in the total supply of money in circulation within an economy, typically achieved through central bank operations.

Excess Reserves

Funds that banks hold over and above the legal requirement set by the central bank or banking regulator.

New Reserves

Additional funds or assets that financial institutions or countries set aside to meet future liabilities or unforeseen needs.