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Determine if the cash-generating unit is impaired

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Reference no: EM132204004

Pearl Landscaping Limited has determined that its lawn maintenance division is a cash-generating unit under IFRS. The carrying amounts of the division's assets at December 31, 2017, are as follows:

Land $39,000

Building $68,000

Equipment $45,000

Trucks: $33,000

Total: $185,000

The lawn maintenance division has been assessed for impairment and it is determined that the division's value in use is $173,000, fair value less costs to sell is $140,000, and undiscounted future net cash flows is $209,000.

Determine if the cash-generating unit is impaired and prepare the journal entry, if any, to record the impairment at December 31, 2017, assuming that none of the individual assets in the division has a determinable recoverable

Reference no: EM132204004

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