Impairment of a CGU (Cash Generating Unit) Potters Ltd has determined that its fine China division is a CGU. The carrying amounts of the assets at 30 June 2021 are as follows: Potters Ltd calculated the value in use of the division to be $510000. COCA318 impairment Loss - HW4 questions Week 6 Page 1 of 4 Required: Provide the necessary journal entrles for the impairment loss. Answer: POTTERS LTD If recoverable amount is $510000, then there is an impairment loss of $40000 (i.e., $550,000 510,000) Assuming the inventory is carried at the lower of costs and net reallsable value, the allocation of the impairment loss is as follows