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Part A -
Write 1000 word short essay about the following: How to calculate Recoverable amount, Value in use, Fair value less cost of disposal.
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:"
Account
Carrying Amount
Patent
318000
Equipment
73000
Fittings
46000
Inventory
20000
Goodwill
17000
Total CA
474000
Gali Ltd calculated the value in use of the division to be: 423000
If the fair value less costs of disposal of the Patent is: 305630
Required: Prepare the journal entry(ies) for any impairment loss occurring at 30 June 2015 including supporting calculations.
This assignment has 2 parts, 1000 word theory interpretation essay and a response to a practical application of the theory.
Verified Expert
The paper is in relation to the steps involved in computing the impairment loss of an asset. The asset is impaired when its recoverable amount is less than its carrying amount. The recoverable amount is computed which is the greater of the fair value less cost of disposal and value in use.
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This assignment has 2 parts, 1000 + 10% word theory interpretation essay and a response to a practical application of the theory. The assignment must be typed, use Arial font, 12, make sure you do proper referencing, at least use 6 references, to be submitted the soft copy in Turnitin and hard copy in lecture Week 10. Please make sure you attach a KOI assignment cover sheet, with ID numbers and signed. Late assignments will be penalised, 10% deduction per day.
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