An acquired cosmetics brand, never amortised because its useful life was judged indefinite, has a carrying amount of 840,000 at 31 December 20X3. At that date, new regulations on certain ingredients lead management to set its remaining useful life at 7 years, with no residual value. The test performed under IAS 36 gives a recoverable amount of 910,000. Calculate the impairment loss to be recognised at 31 December 20X3 and the annual charge from 20X4.
- Carrying amount of the brand
- 840,000
- Recoverable amount under IAS 36
- 910,000
- Remaining useful life
- 7