Part A -
Write 1000 word short essay about the following: How to calculate Recoverable amount, Value in use, Fair value less cost of disposal.
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
|
|
Patent
|
318000
|
|
Equipment
|
73000
|
|
Fittings
|
46000
|
|
Inventory
|
20000
|
|
Goodwill
|
17000
|
|
Total CA
|
474000
|
Gali Ltd calculated the value in use of the division to be: 423000
If the fair value less costs of disposal of the Patent is: 305630
Required: Prepare the journal entry(ies) for any impairment loss occurring at 30 June 2015 including supporting calculations.
This assignment has 2 parts, 1000 word theory interpretation essay and a response to a practical application of the theory.