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:

Attributes of Innovation

Characteristics or features that define new and creative ideas, products, or methods which provide value and competitive advantage.

Customer Value Frontier

A concept that defines the maximum value a company can deliver to its customers relative to its competitors.

Southeast Quadrant

Typically refers to the lower right section in a two-dimensional graph or matrix, but without context, its specific business implication is uncertain.

Northeast Quadrant

Often used in strategic frameworks, it refers to the top right section, typically associated with positive or high-value outcomes.