Document ID: chunk:federal_register_of_legislation:F2023C00180:front:0:p54
Version: federal_register_of_legislation:F2023C00180
Segment Type: other
Provision Reference: 
Character Range: 148410–155927

At the end of 20X0
 Schedule 1. Calculation of the plant's value in use at the end of 20X0

Year                                                                                                Future      Discounted
                                                                                                    cash flows  at 14%

                                                                                                    CU                      CU

20X1                                                                                                300(a)                  263
20X2                                                                                                280(b)                  215
20X3                                                                                                420(b)                  283
20X4                                                                                                520(b)                  308
20X5                                                                                                350(b)                  182
20X6                                                                                                420(b)                  191
20X7                                                                                                480(b)                  192
20X8                                                                                                480(b)                  168
20X9                                                                                                460(b)                  141
20X10                                                                                               400(b)                  108
                                                                                                                            2,051

  (a) Excludes estimated restructuring costs reflected in management budgets.
  (b) Excludes estimated benefits expected from the restructuring reflected in management budgets.

IE49 The plant's recoverable amount (ie value in use) is less than its carrying amount. Therefore, K recognises an impairment loss for the plant.
Schedule 2. Calculation of the impairment loss at the end of 20X0

                                        Plant

                                        CU

Carrying amount before impairment loss  3,000
Recoverable amount (Schedule 1)         2,051
Impairment loss                         (949)
Carrying amount after impairment loss   2,051

At the end of 20X1
IE50 No event occurs that requires the plant's recoverable amount to be re-estimated. Therefore, no calculation of the recoverable amount is required to be performed.

At the end of 20X2
IE51 The entity is now committed to the restructuring. Therefore, in determining the plant's value in use, the benefits expected from the restructuring are considered in forecasting cash flows. This results in an increase in the estimated future cash flows used to determine value in use at the end of 20X0. In accordance with paragraphs 110 and 111 of AASB 136, the recoverable amount of the plant is re-determined at the end of 20X2.
Schedule 3. Calculation of the plant's value in use at the end of 20X2

Year                                                                                                Future      Discounted
                                                                                                    cash flows  at 14%

                                                                                                    CU                      CU

20X3                                                                                                420(a)                  368
20X4                                                                                                570(b)                  439
20X5                                                                                                380(b)                  256
20X6                                                                                                450(b)                  266
20X7                                                                                                510(b)                  265
20X8                                                                                                510(b)                  232
20X9                                                                                                480(b)                  192
20X10                                                                                               410(b)                  144
                                                                                                                            2,162

  (a) Excludes estimated restructuring costs because a liability has already been recognised.
  (b) Includes estimated benefits expected from the restructuring reflected in management budgets.

IE52 The plant's recoverable amount (value in use) is higher than its carrying amount (see Schedule 4). Therefore, K reverses the impairment loss recognised for the plant at the end of 20X0.
Schedule 4. Calculation of the reversal of the impairment loss at the end of 20X2

                                                                                                                                                                                                                              Plant

                                                                                                                                                                                                                              CU

Carrying amount at the end of 20X0 (Schedule 2)                                                                                                                                                                               2,051
End of 20X2
Depreciation charge (for 20X1 and 20X2–Schedule 5)                                                                                                                                                                            (410)
Carrying amount before reversal                                                                                                                                                                                               1,641
Recoverable amount (Schedule 3)                                                                                                                                                                                               2,162
Reversal of the impairment loss                                                                                                                                                                                               521
Carrying amount after reversal                                                                                                                                                                                                2,162
Carrying amount: depreciated historical cost (Schedule 5)                                                                                                                                                                     2,400(a)
  (a) The reversal does not result in the carrying amount of the plant exceeding what its carrying amount would have been at depreciated historical cost. Therefore, the full reversal of the impairment