Facts
Z plans to dispose of a group of net assets that form a disposal group. The net assets at December 31, 20X5, are
|
Carrying value at |
|
|
December 31, 20X5 |
|
|
$m |
|
|
Goodwill |
6 |
|
Property, plant, and equipment |
18 |
|
Inventory |
10 |
|
Financial assets (profit of $2 million recognized in equity) |
7 |
|
Financial liabilities |
(4) |
On moving to accounting under IFRS, some of the assets had been transferred at deemed cost and had not been remeasured under IFRS. These assets were property, plant, and equipment, and inventory. Under IFRS, property, plant, and equipment would be stated at $16 million and inventory stated at $9 million.
The fair value less costs to sell of the disposal group is $25 million. Assume that the disposal group qualifies as held for sale. Therefore, under IAS 36, any impairment loss will be allocated to goodwill and PPE.
Required
Describe how the disposal group would be shown in the financial statements for the year ended December 31, 20X5.