Part A -
Write a 1000 word short essay about the following: Impairment loss for Cash generating units excluding 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
|
|
Patent
|
390000
|
|
Equipment
|
90000
|
|
Fittings
|
57000
|
|
Inventory
|
25000
|
|
Goodwill
|
21000
|
|
Total CA
|
583000
|
Gali Ltd calculated the value in use of the division to be: 520000
If the fair value less costs of disposal of the Patent is: 374749
Required - Prepare the journal entry(ies) for any impairment loss occurring at 30 June 2015 including supporting calculations.
Need to complete only Part A only.