Palm Beach Ltd Has a Cash Generating Unit (CGU)and Has

question 66

Multiple Choice

Palm Beach Ltd 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 AASB 136 Impairment of Assets what should be the carrying amount of equipment as at 30 June 2012?

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

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Definitions:

Sty

A painful, red lump on the edge of an eyelid caused by an infected oil gland.

Iritis

Irritation of the iris, the part of the eye that has color, resulting in discomfort, sensitivity to light, and issues with sight.

Systemic Absorption

The process by which substances enter the bloodstream and spread throughout the body, which may occur through the skin, lungs, or digestive system.

Topical Medication

Medicines applied directly to a particular area of the skin or mucous membrane to treat localized conditions or for skin care.