Disposal group file: loss, allocation, liabilities and presentation: Allocation — property, plant and equipment

Context

Altaïr Distribution SA (fictitious entity) decides to dispose of its logistics division and classifies it, at 31 December 20X5, as a disposal group held for sale (the criteria are met, case data). The group comprises assets within the measurement scope of the standard, receivables and a deferred tax asset, as well as liabilities. A year later, the fair value of the group has increased.

Assignment

Disposal group file

Purpose of the workpaper

For each group, list the assets remeasured under their own standard before classification and the liabilities, identify the assets within the measurement scope of the standard (any goodwill is entered separately) and enter the fair value of the group less costs to sell (datum of the file). The file computes the carrying amount of the group, the loss, its allocation (one instance per target asset) and the reversal capped at the cumulative loss on the assets other than goodwill (the goodwill loss is never reversed). Assets outside the measurement scope and liabilities are not reduced by the loss; liabilities are presented separately, without offsetting against the assets, and interest continues to be recognised. Then prepare the entries.

Questions of the file covered by this workpaper

• Which allocation order should be used and can the fair value of the group be relied on? Justify.
• Compute the carrying amount of the group after prior remeasurement.
• Compute the loss of the group and allocate it.
• Compute the 20X6 reversal capped at the cumulative loss.
• Record the loss, the reversal, the reclassification of the liabilities and the interest.

• ScheduleComposition of the logistics divisionOpen
• ExtractExpert's reportsOpen
• ContractTerm supplier creditOpen
• MemoTransport tariffOpen