Page 20 - 10. COMPILER QB - INDAS 36

Less: Recoverable amount (1.09)
Impairment loss 2.46
Less: Balance in revaluation reserve as on 31.03.2016:
Balance in revaluation reserve as on 31.03.2014
2.10
Less: Enhanced depreciation met from revaluation reserve

2014-2015 and 2015-2016 = [(1.775 –1.25) x 2year (1.05)
Impairment loss set off against revaluation reserve balance as per
of INDAS 36 “Impairment of Assets” (1.05)
Impairment Loss to be debited to profit and loss account 1.41

Q13. (Nov. 20) - Similar to Q.11

Pacific Ocean Railway Ltd. has three Cash Generating units namely Train, Railway station and Railway tracks,
st
the carrying amounts of which as on March 31 , 2020 are as follows:
Cash Generating Carrying Amount (Rs. Remaining
Units in Cr.) Useful Life
Train 1500 10
Railway Station 2250 20
Railway Track 3300 20

Pacific Ocean Railway Ltd. also has two Corporate Assets having a remaining useful life of 20 years.

(₹ in crore)
Corporate Carrying Remarks
Assets amount
Land 1,800 The carrying amount of Land can be allocated on a
reasonable basis (i.e., pro rata basis) to the
individual cash-generating units.

Building 600 The carrying amount of Buildings cannot be
allocated on a reasonable basis to the individual
cash-generating units.
Recoverable amount as on March 31", 2020 is as follows:

Cash Generating units Recoverable amount (₹ in crore)
Train 1,800
Railway station 2,700
Railway tracks 4,200
Company as a whole 9,600
Calculate the impairment loss, if any. Ignore decimals.
SOLUTION

Allocation of corporate assets
The carrying amount of land is allocated to the carrying amount of each individual cash generating unit. A
weighted allocation basis is used because the estimated remaining useful life of Train’s cash-generating unit is

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