Facts
The calculation refers to an impairment loss suffered by subsidiary Zen at December 31, 20X4:
|
Goodwill |
Net assets |
Total |
|
|
$m |
$m |
$m |
|
|
December 31, 20X4—carrying value |
300 |
900 |
1200 |
|
Impairment |
(300) |
(200) |
(500) |
|
700 |
700 |
There has been a favorable change in the estimates of the recoverable amount of Zen’s net assets since the impairment loss was recognized. The recoverable amount is now $800 million at December 31, 20X5. The net assets’ carrying value would have been $720 million at December 31, 20X5. Assets are depreciated at 20% reducing balance.
Required
Show the accounting treatment for the reversal of the impairment loss as of December 31, 20X5.