At 31 December 20X1, Doravel holds an asset recognised from the costs to fulfil a software development contract, with a carrying amount of 40,000. It still expects to receive 150,000 for the services to which this asset relates. The costs that relate directly to providing those services and have not yet been recognised as expenses are estimated at 125,000. Calculate the impairment loss to be recognised.
- Carrying amount of the asset
- 40,000
- Consideration still to be received
- 150,000
- Directly related costs not yet recognised as expenses
- 125,000