Is not easier to just depreciate the assets like do

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You are the accountant for Violet Ltd, a large organisation with a number of subsidiaries. On 1 January 2019, Violet Ltd purchased all of the shares of another company, Crumble Ltd.

Following this acquisition, management have raised the following issues with you:

Question 1: We noticed Crumble Ltd has impaired two of its non-current assets, an item of equipment and a registered brandname. We do not understand why this has occurred. Isn't it easier to just depreciate the assets like we do with Violet Ltd's non-current assets?

You now need report for senior management regarding the accounting treatment identified in the issue raised above.

Reference no: EM132591580

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