A sports club holds rights to exploit the image of its stadium, acquired for 2,000,000 and measured under the cost model. At the year-end, accumulated amortisation stands at 600,000 and an impairment loss of 200,000 was already recognised two years ago. The team's relegation leads to a new test under IAS 36, which gives a recoverable amount of 950,000. Under IAS 36, when the recoverable amount is lower than the carrying amount, the difference is recognised as an impairment loss in profit or loss. Calculate the new impairment loss and the carrying amount after the test.
- Cost of the rights
- 2,000,000
- Accumulated amortisation
- 600,000
- Accumulated prior impairment losses
- 200,000
- Recoverable amount under IAS 36
- 950,000