2 (a) What is a cash generating unit? How are impairment losses accounted for in relation to cash generating units? (5 marks) (b) Liao Bhd has two cash generating units, Division One and Division two. At 30 June 2020, the net assets of the two divisions were as follows: Division One Division Two Cash Inventory Receivables 12 000 8 000 30 000 40 000 20 000 8 000 Plant 320 000 0 Accumulated depreciation (Plant) (120 000) 0 Land 90.000 150 000 Buildings 110 000 140 000 Accumulated depreciation (Buildings) (40 000) (60.000) Furniture & Fittings 0 30 000 Accumulated depreciation (Furniture & 0 (10 000) Fittings) Total assets Provisions Borrowings Total liabilities Net Assets 422 000 306 000 20 000 40 000 30 000 66 000 50 000 106 000 372 000 200 000 Additional information regarding the divisions' assets is as follows: (i) the receivables of both divisions were considered to be collectable (ii) Division One's land had a fair value less cost of disposal of RM135 000 at June 2020 (iii) At 30 June 2020 Liao Bhd also had the following corporate assets, which Liao's management decided to allocate equally to the two division: Goodwill of RM14.000 a head office building with carrying amount of RM160 000 (net of RM50 000 accumulated depreciation) FE-SET A-Part 2 13 ACT3128- EXE Tri Nov_Feb 2021/22 (iv) Liao Bhd management conducted impairment testing on the company's asset at 30 June 2020 and determined that Division One's recoverable amount was RM415 000 and Division Two's recoverable amount was RM310 000. Required: Prepare the journal entries required at 30 June 2020 to account for any impairment losses. (15 marks)