Part A -
Write 1000 words short essay about the following: Disclosure of an impairment loss.
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
|
|
Land
|
100000
|
|
Equipment
|
23000
|
|
Building
|
14000
|
|
Inventory
|
6000
|
|
Goodwill
|
5000
|
|
Total CA
|
148000
|
Gali Ltd calculate the value in use of the division to be: 133000
If the fair value less costs of disposal of the Land is: 96351
Required: Prepare the journal entry(ies) for any impairment loss occurring at 30 June 2015 including supporting calculations.
Part A is 1000 words short essay and part B is a question you have to solve and do journal entries (showing calculations).