Sbr (int/UK) Strategic Business Reporting

(1 mark) 

A gain of $10 million ($340m – $330m) would be recorded in other 

comprehensive income. 

(1 mark) 

The net assets of Jam would now have a carrying amount of $1,302 million 

($1,292m + $10m) including $846 million ($836m + $10m) for property, plant 

and equipment.   

(1 mark) 

On classification as held for sale, Jam must be measured at the lower of 

carrying amount and fair value less costs to sell. This gives rise to an 

impairment loss of $82 million ($1,302m – $1,220m), recorded in profit or loss. 

 

(1 mark) 

In accordance with IAS 36 Impairment of Assets, this will first be allocated to 

the goodwill of $20 million, reducing its value to nil.  

(1 mark) 

The remaining impairment loss is allocated to non-current assets to which the 

measurement requirements of IFRS 5 Non-current Assets Held for Sale and 

Discontinued Operations apply. No impairment will therefore be allocated to 

the current assets of Jam. 

(1 mark) 

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MO CK A  ANSWER S 

K APLAN P UBLISH IN G