Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Gali Ltd has determined that its fine china division is a CGU( Cash Generating Unit ) . The carrying amounts of the assets at 30

Gali Ltd has determined that its fine china division is a CGU( Cash Generating Unit ) . The carrying amounts of the assets at 30 June 2015 are as follows:

Account Carrying Amount

plant 385000

Equipment 89000

Fittings 56000

Inventory 24000

Goodwill 20000

Total CA 574000

Gali Ltd calculated the value in use of the division to be: 514000

If the fair value less costs of disposal of the plant is: 370472

Required Prepare the journal entry(ies) for any impairment loss occurring at 30 June 2015 including supporting calculations.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting An Introduction

Authors: Pauline Weetman

4th Edition

0273703404, 978-0273703402

More Books

Students also viewed these Accounting questions