JAJ Industries plc operates a number of businesses. Evidence suggests that one of these may have impaired assets. The following information has been obtained:

In addition to the carrying amount of the assets allocated to the above cash generating units there is goodwill of £2.3m. The goodwill relates to construction and haulage, but it is not possible to allocate it between the two. It is estimated that the combined recoverable amount of construction and haulage is £5.0m.

None of the assets has previously been revalued.

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Calculate, and prepare journal entries, for any impairment of:

(a) the individual cash generating units, and

(b) the goodwill relating to construction and haulage. Level III

Transcribed Image Text:

CGU Carrying amount Net selling price Value in use Construction Haulage Maintenance m m m 3.1 2.6 1.8 2.5 2.1 2.0 2.7 1.7 1.9