528 paragraphs found in AASB 136
The entity is now committed to the restructuring. Therefore, in determining the plant’s value in use, the benefits expected from the restructuring are considered in forecasting cash flows. This results in an increase in the estimated future cash flows …
Year Futurecash flows Discountedat 14% CU CU 20X3 420(a) 368 20X4 570(b) 439 20X5 380(b) 256 20X6 450(b) 266 20X7 510(b) 265 20X8 510(b) 232 20X9 480(b) 192 20X10 410(b) 144 2,162 (a) Excludes estimated restructuring …
The plant’s recoverable amount (value in use) is higher than its carrying amount (see Schedule 4). Therefore, K reverses the impairment loss recognised for the plant at the end of 20X0. Schedule 4. Calculation of the reversal of the impairment loss at the …
Plant CU Carrying amount at the end of 20X0 (Schedule 2) 2,051 End of 20X2 Depreciation charge (for 20X1 and 20X2–Schedule 5) (410) Carrying amount before reversal 1,641 Recoverable amount (Schedule 3) 2,162 Reversal of the impairment loss 521 …
There is a cash outflow of CU100 when the restructuring costs are paid. Even though a cash outflow has taken place, there is no change in the estimated future cash flows used to determine value in use at the end of 20X2. Therefore, the plant’s recoverable …
End of year Depreciated historical cost Recoverable amount Adjusted depreciation charge Impairment loss Carrying amount after impairment CU CU CU CU CU 20X0 3,000 2,051 (949) 2,051 20X1 2,700 nc (205) 1,846 20X2 2,400 2,162 …
At the end of 20X0, entity F tests a machine for impairment. The machine is a cash-generating unit. It is carried at depreciated historical cost and its carrying amount is CU150,000. It has an estimated remaining useful life of 10 …
The machine’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: (a) estimated costs necessary to maintain the level of economic benefit expected to arise from the machine in its current condition; and (b) that in 20X4, costs of CU25,000 will be incurred to enhance the machine’s …
At the end of 20X4, costs to enhance the machine’s performance are incurred. The machine’s estimated future cash flows reflected in the most recent management approved budgets are given in paragraph IE60 and a current discount rate is the same as at the …