At the year-end, Corvane tests a laser-cutting machine with a carrying amount of 820,000. Its fair value (IFRS 13, given) is 760,000. A sale would involve 7,000 of legal costs and 15,000 of removal; Corvane also estimates at 25,000 the reorganisation of its workshop that would follow the disposal. None of these costs is recognised as a liability. Value in use, calculated separately, is 735,000. Determine the fair value less costs of disposal, the recoverable amount and the impairment loss.
- Carrying amount of the machine
- 820,000
- Fair value (IFRS 13, given)
- 760,000
- Legal costs of the sale
- 7,000
- Removal costs
- 15,000
- Reorganisation of the workshop after the disposal
- 25,000
- Value in use (given)
- 735,000