Question 13.5 Impairment loss, goodwill, partly owned subsidiary Round Ltd acquired 60% of the issued shares of Shicld Ltd on 1 January 2015 for $426000. At this date, the net fair value of the identifiable assets and liabilities of Shield Ltd was $660 000. At 31 December 2015, the tangible assets and liabilities of Shield Ltd as included in the con- solidated financial statements of Round Ltd were as follows: LO5 00 Property, plant and equipment Accumulated depreciation $ 863 000 (120000) 743000 55000 Inventory Cash 22 000 820000 (50000) $770000 Liabilitles oodwill had not been written down over the year. NOTTES ETAIK 820000 (50000) Liabilities $770000 Goodwill had not been written down over the year. In conducting an impairment test on Shield Ltd as a cash-generating unit, Round Ltd assessed the recoverable amount of Shield Ltd to be $800 000, Required A. Explain how the impairment loss in relation to Shield Ltd should be allocated. Prepare journal entry(ies) in relation to the assets of Shield Ltd at 31 December 2015 as a result of the impairment test. B. Explain the accounting for the impairment (if any) if the recoverable anount was $860 000