Homes Stylist Ltd (HSL) runs 4 stores (namely: Alpha, Beta, Ceta and Delta) selling antique furniture and home accessories in various cities in Europe. Each store makes all its retail purchases through HSL's purchasing centre and all stores are managed in the same way. Marketing, advertising and human resources functions are conducted and centralised in HSL's headquarters. Each store has its own customer base and generates daily sales information and monthly statements of profit or loss for management to make decisions about continuing to operate individual stores. At its recent management meeting, the Sales Director has expressed his concern about the decrease in sales performance of stores in some cities due to keen competition in that region and a change in the desire of customers for stylish modern furniture. The Sales Director is considering to re-allocate resources to enhance the profitability of the company and has doubt on whether impairment assessment should be performed at entity level for HSL as a whole or at store level at 31 October 2018. According to management's decision, the carrying amount of the headquarters' building can be allocated to the cash generating units under review. The allocation basis of the headquarters' building is based on the carrying amount of the stores. As at 31 October 2018, the following financial data was obtained: Store Carrying amount of relevant assets $'o00 Recoverable amount $'o00 Alpha Beta Ceta Delta Total 4,300 5,400 6,000 3.800 3,100 6,200 7,000 3.500 19,800 19.500 Recoverable amount of HSL as a whole: Carrying amount of headquarters' building: 21,000 1,800 Required: (a) Based on the background information, advise the Sales Director at what level should HSL conduct its impairment assessment for the year ended 31 October 2018 in accordance with HKAS 36 'Impairment of Assets'. (7 marks) (b) Determine the impairment of assets, with detailed calculation, if any, to be recognised by HSL at 31 October 2018 and prepare journal entries to record the impairment loss. (13 marks)