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Brown owns an item of equipment with a carrying value at 31 November 20X3 of $2,000,000. The depreciated historical cost of the item at that date was $1,500,000. An impairment review has been carried out because the company is finding it difficult to sell its goods overseas. This produces the following results:
What is the impairment loss and how should it be recognised in the financial statements? A. Loss of $800,000, $500,000 to be charged to other comprehensive income, $300,000 to be charged to profit or loss. B. Loss of $700,000, $500,000 to be charged to other comprehensive income, $200,000 to be charged to profit or loss. C. Loss of $700,000 to be charged to the income statement. D. Loss of $800,000 to be charged to profit or loss |