This assignment has 2 parts, 1000 + 10% word theory interpretation essay and a response to a practical application of the theory.
The assignment must be typed, use Anal font, 12, to avoid plagiarism, make sure you do proper referencing, at least use 6 references, to be submitted the soft copy in Tumitin and hard copy in lecture Week 10. Please ensure you attach a KOl assignment cover sheet, with ID numbers and signed. Late assignments will be penalised, 10% deduction per day.
Part A: 1000 word short essay about the following:
Disclosures for finance leases
Part B: Provide all calculations and related journal entries for the following case:
Gali Ltd has determined that its fine china division is a CGU. The carrying amounts of the assets at 30 June 2015 are as follows:
|
Account
|
Carrying Amount
|
|
Land
|
$299,200
|
|
Franchise
|
$69,000
|
|
Furniture
|
$43,000
|
|
Inventory
|
$18,000
|
|
Goodwill
|
$15,000
|
|
Trotal CA
|
$444,200
|
Gali Ltd calculated he value in use of the division to be: $399,200
If the fair value less costs of disposal of the Land is: $288,286
Required
Prepare the journal entry(ies) for any impairment loss occurring at 30 June 2015 including supporting calculations.