The Hestia group sells, for net proceeds of 950,000, its hospital maintenance division, which was part of the Technical services CGU. The carrying amount of the division's identifiable net assets is 700,000. Goodwill allocated to the CGU is 400,000; the value of the division is estimated at 1,000,000 and that of the operations retained at 3,000,000. No method more relevant than relative values has been demonstrated. Compute the goodwill derecognised with the division and the gain or loss on disposal.
- Net disposal proceeds (given)
- 950,000
- Carrying amount of the division's identifiable net assets
- 700,000
- Goodwill allocated to the Technical services CGU
- 400,000
- Value of the division disposed of
- 1,000,000
- Value of the operations retained
- 3,000,000