A school publisher acquired a licence to adapt a reading method for 1,100,000, measured under the cost model; accumulated amortisation amounts to 440,000. A reform of the school curriculum reduces the appeal of the method: the test performed under IAS 36 results in a recoverable amount of 585,000. 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. Which entry should be recorded at the year-end?
- Cost of the licence
- 1,100,000
- Accumulated amortisation
- 440,000
- Recoverable amount under IAS 36
- 585,000