528 paragraphs found in AASB 136
At the end of 20X0, entity K tests a plant for impairment. The plant is a cash-generating unit. The plant’s assets are carried at depreciated historical cost. The plant has a carrying amount of CU3,000 and a remaining useful life of 10 …
The plant’s recoverable amount (ie higher of value in use and fair value less costs of disposal) is determined on the basis of a value in use calculation. Value in use is calculated using a pre-tax discount rate of 14 per …
Management approved budgets reflect that: (a) at the end of 20X3, the plant will be restructured at an estimated cost of CU100. Since K is not yet committed to the restructuring, a provision has not been recognised for the future restructuring costs. (b) …
At the end of 20X2, K becomes committed to the restructuring. The costs are still estimated to be CU100 and a provision is recognised accordingly. The plant’s estimated future cash flows reflected in the most recent management approved budgets are given …
At the end of 20X3, actual restructuring costs of CU100 are incurred and paid. Again, the plant’s estimated future cash flows reflected in the most recent management approved budgets and a current discount rate are the same as those estimated at the end …
1. Calculation of the plant’s value in use at the end of 20X0 …
Year Futurecash flows Discountedat 14% CU CU 20X1 300(a) 263 20X2 280(b) 215 20X3 420(b) 283 20X4 520(b) 308 20X5 350(b) 182 20X6 420(b) 191 20X7 480(b) 192 20X8 480(b) 168 20X9 460(b) 141 20X10 400(b) 108 2,051 (a) …
The plant’s recoverable amount (ie value in use) is less than its carrying amount. Therefore, K recognises an impairment loss for the plant. Schedule 2. Calculation of the impairment loss at the end of …
Plant CU Carrying amount before impairment loss 3,000 Recoverable amount (Schedule 1) 2,051 Impairment loss (949) Carrying amount after impairment loss …
No event occurs that requires the plant’s recoverable amount to be re-estimated. Therefore, no calculation of the recoverable amount is required to be …