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:

Unanimous Vote

A unanimous vote occurs when all members of a decision-making body agree on a proposal or decision, indicating full support or approval.

Outside Directors

Board members of a corporation who are not part of the company's day-to-day operations, offering independence and oversight.

Ownership Interest

A party's legal share in or claim to a company, property, or asset, entitling them to certain rights such as profits, voting, and transfers.

Corporate Policy Decisions

Strategic choices made by a company's leadership that impact its operations, ethical stance, or market position.