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Numa has been experiencing declining market conditions for its sportswear division. Management decided to test the operational assets of the division for possible impairment. The test revealed the following: book (carrying) value of division's assets, $26.5m, fair value less costs to sell, $21m, PV of future cash flows, $28m. Based on FRS 36, what amount of impairment loss should Numa record?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9797093

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