Entity A has a cash-generating unit (CGU) that suffers a large drop in income due to reduced demand for its products.

An impairment review was carried out and the recoverable amount of the CGU was determined at $100,000.

On 31 December 2019, the assets of the CGU had the following carrying amounts immediately prior to the impairment:

	$
Goodwill	25,000
Intangible assets	60,000
Plant	30,000
Inventory	15,000
Receivable	10,000
	140,000

The inventory and receivables are considered to be included at their recoverable amounts.

REQUIRED:

According to accounting standards, provide the journal entries for impairment loss recognition on 31 December 2019.

ACCOUNT NAMES FOR INPUT:

| Road roller | Plant | Machine | Motor van | Land | Building | Inventory | Intangible assets | Bank |

| Payable | Receivable | Retained earnings | Other income | Other expense | Interest expense | Interest revenue |

| Depreciation | Accum. depreciation | Impairment loss | Reversal of impairment loss | Loss on disposal | Gain on disposal |

| Restoration liability | Goodwill | Revaluation surplus | Revaluation deficit | No entry |

ANSWERS:

Journal Entries:

(For entering more than one asset on Debit or Credit Side, the sequence is as same as the sequence listed in the question.)

Date	Account Name	Debit ($)	Credit ($)
31-Dec-19	Blank 1	Blank 2
	Blank 3	Blank 4
	Blank 5	Blank 6
	Blank 7	Blank 8
	Blank 9	Blank 10
	Blank 11	Blank 12