Osiris Agricultural Products Ltd (OAP) is one of the largest companies in Asia involved in the growing and processing of agricultural products. It is organised into three divisions which are regarded as separate cash-generating units of the company by HKAS 36 "Impairment of Assets" to sell different quality levels of agricultural products. OAP had a head office (HO) and a research centre (RC). The RC is used by all the cash- generating units to improve quality of handling and processing of the agricultural products. Information on the carrying amounts of the three cash-generating units at 31 October 2020 is as follows: $ Premium 1,456,000 Fine 1,019,200 Economy 769,600 Because of downturn of economy, the management of OAP decided to undertake an impairment test of the assets of the entity. Some of the information used in that process was as follows: (1) As the HO interacts equally with the three cash-generating units, the assets of the HO were allocated evenly to the three units. In relation to the RC, there was no reasonable way to allocate its assets to the three cash-generating units. Neither the HO nor the RC generates cash inflows. The assets of these corporate assets at 31 October 2020 were as follows: $ HO 187,200 RC 104,000 (i) The recoverable amounts of the three cash-generating units and entity as a whole as at 31 October 2020 were assessed to be: $ Premium 1,612,000 Fine 1,040,000 Economy 780,000 3,406,000 Required: (a) Describe, using examples, circumstances that may indicate that a company's assets may have been impaired. You should use examples other than those related to OAP in your answer. (5 marks) (b) Describe the process and determine the impairment loss of OAP with respect of each CGU and each corporate asset separately if exists, with detailed calculation, if any, to be recognised by OAP at 31 October 2020 and prepare journal entries to record the impairment loss. Round your figures to the nearest dollar. (15 marks)