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 Arial font 12, to avoid plagiarism make sure you do proper referencing, at least use 6 references, to be submitted the soft copy in Turnitin and hard copy in lecture Week 10. Please ensure you attach a KOI assignment cover sheet with ID numbers and signed. Late assignments will be penalised, 5%of total available marks deduction per day,
Part A:1000 word short essay about the following:
Explain the main objectives of AASB 13
Part B: Provide all calculations and related journal entries for the following case:
Galt Ltd has determined that its fuse china division is a CGU. The canying amounts of the assets at 30 June 2015 are as follows:
| Account |
Carrying Amount |
| Equipment |
$267,700 |
| Franchise |
$62,000 |
| Furniture |
$39,000 |
| Inventory |
$17,000 |
| Goodwill |
$14,000 |
| Total CA |
$399,700 |
Gali Ltd calculated the value in use of the division to be: $357,700
If the fair value less costs of disposal of the Equipment $257,535
Required
Prepare the journal entry(ies) for any impairment loss occurring at 30 June 2015 including supporting calculations.