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.

On31 December 2020, the assets of the CGU had the following carrying amounts immediately prior to the impairment:

$Goodwill25,000Intangible assets60,000Plant30,000Inventory15,000Receivable10,000140,000

The inventory and receivable are considered to be included in their recoverable amounts.

REQUIRED:

According to the relevant accounting standards, provide the journal entries for impairment loss recognition on31 December 2020.

ACCOUNTS 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 the Debit or Credit side, the sequence is as same as the sequence listed in the question.