Part A -
Write a 1000 word short essay about the following: Impairment loss for Cash generating units including Goodwill.
Part B -
"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
|
|
plant
|
106000
|
|
Equipment
|
24000
|
|
Fittings
|
15000
|
|
Inventory
|
6000
|
|
Goodwill
|
5000
|
|
Total CA
|
156000
|
Gali Ltd calculated the value in use of the division to be: 141000
If the fair value less costs of disposal of the plant is: 102345
Required - Prepare the journal entry(ies) for any impairment loss occurring at 30 June 2015 including supporting calculations.
This assignment has 2 parts, 1000 + 10% word theory interpretation essay and a response to a practical application of the theory.