Use the information provided in BE12.8. Assume that the recoverable amount of the division is estimated to

Question:

Use the information provided in BE12.8. Assume that the recoverable amount of the division is estimated to be HK$750,000. Prepare Waters' journal entry, if necessary, to record impairment of the .
Waters Ltd. purchased Jang Group 3 years ago and at that time recorded of HK$400,000. The Jang Division's net assets, including the , have a carrying amount of HK$800,000. The fair value of the division is estimated to be HK$1,000,000. Prepare Waters' journal entry, if necessary, to record impairment of the .
Goodwill
Goodwill is an important concept and terminology in accounting which means good reputation. The word goodwill is used at various places in accounting but it is recognized only at the time of a business combination. There are generally two types of...