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 2020, 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 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 on 31 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.

Date	Account Name	Debit ($)	Credit ($)	Hints For Sequence
31-Dec-20				-
				Judge Dr/Cr Side. Only Input the Amount.
				Judge Dr/Cr Side. Only Input the Amount.
				Judge Dr/Cr Side. Only Input the Amount.
				Judge Dr/Cr Side. Only Input the Amount.
				-