Question: The assignment must be typed, use Axial 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.
Part A:1000 word short essay about the following:
1. 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 CGL:. The carrying amounts of the assets at 30 June 2015 are as follows:
|
Account
|
Carrying Amount
|
|
Land
|
$155,200
|
|
Copyright
|
$36,000
|
|
Machinery
|
$23,000
|
|
Inventory
|
$10,000
|
|
Goodwill
|
$8,000
|
|
Total CA
|
$232,200
|
Gali Ltd calculated the value in use of the division to be: $208,200
If the fair value less costs of disposal of the Land is: $149,404
Required: Prepare the journal entry(ies) for any impairment loss occurring at 30 June 2015 including supporting calculations.