Estenor has recognised as an asset the set-up costs of a logistics contract; at 31 December 20X2, their carrying amount is 18,000. For the services still to be provided, Estenor still expects a fixed fee of 60,000 and a performance bonus whose most likely amount is estimated at 8,000; this bonus is excluded from the transaction price because of the constraint on variable consideration. Given the customer's credit risk, Estenor estimates that it will not recover 3,000 of this consideration. The costs that relate directly to the remaining services and have not yet been recognised as expenses amount to 54,000. Calculate the impairment loss on the asset.
- Carrying amount of the asset
- 18,000
- Fixed fee still to be received
- 60,000
- Estimated performance bonus (most likely amount)
- 8,000
- Estimated amount not recoverable because of credit risk
- 3,000
- Directly related costs not yet recognised as expenses
- 54,000