This assignment has 2 parts, 1000 + 10% word theory interpretation essay and a response to a practical application of the theory.
Part A:1000 word short essay about the following:
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 CGU. The carrying amounts of the assets at 30 June 2015 are as follows:
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Account
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Carrying Amount
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Land
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$299,200
|
|
|
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Franchise
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$69,000
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|
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Furniture
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$43,000
|
|
|
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Inventory
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$18,000
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|
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Goodwill
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$15,000
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|
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Total CA
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$444,200
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|
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Gali Ltd calculated the value in use of the division to be:
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$399,200
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If the fair value less costs of disposal of the
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|
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$288,286
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Required:
Prepare the journal entry(ies) for any impairment loss occurring at 30 June 2015 including supporting calculations.