Question 3 (Impairment of Assets)

Super Ltd acquired all the assets and liabilities of Awesome Ltd on 1 January 2019. Awesome Ltds activities were run through two separate businesses, namely the Beta Unit and the Gamma Unit. These units are separate CGUs. Super Ltd allowed unit managers to effectively operate each of the units, but certain central activities were run through the corporate office. Each unit was allocated a share of the goodwill acquired, as well as a share of the corporate office. At 31 December 2019, the assets allocated to each unit were as follows.

Details	Beta	Gamma
	$	$
Factory	190	115
Accumulated depreciation	(95)	(85)
Land	75	40
Equipment	105	140
Accumulated depreciation	(80)	(80)
Inventories	20	25
Goodwill	15	10
Corporate property	40	30

Super Ltd determined the recoverable amounts of each of the business units at 31 December 2019 as follows:

Beta $225

Gamma $205

Required

Prepare the journal entry for the impairment loss (if any) for each of the business units as at 31 December 2019. You should show all workings. (6 marks)