The assignment must be typed, use Arial font, 12, to avoid plagiarism, make sure you do proper referencing, at least use 10 references. Late assignments will be penalised, 10% deduction per day.
This assignment has 2 parts, 1000 + 10% word theory interpretation essay and a response to a practical application of the theory.
Part A:1000 word short essay about the following:
Recognision and measurment of an impairment loss for an individual asset
Part B:
-Gali Ltd has determined that its fine china division is a CGU. The carrying amounts of the assets at 30 June 2015 are as follows:
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Account Carrying Amount
plant 484000
Equipment 111000
Fittings 70000
Inventory 30000
Goodwill 25000
Total CA 720000
Gali Ltd calculated the value in use of the division to be: 645000
If the fair value less costs of disposal of the plant is: 465805
Required
Prepare the journal entry(ies) for any impairment loss occurring at 30 June 2015 including supporting calculations.