The Verdalia garden centre chain is testing its Montclair store, which is a CGU. For simplicity, the finance department calculated the store's recoverable amount, 700,000, by including trade customer accounts (85,000) and debts owed to nurseries (45,000). The store's other assets have a carrying amount of 640,000. What is the adjusted carrying amount of the store, and what impairment loss must be recognised?
- Carrying amount of the store's other assets
- 640,000
- Trade customer accounts
- 85,000
- Debts owed to nurseries
- 45,000
- Recoverable amount calculated
- 700,000