Answered step by step
Verified Expert Solution
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
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started