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Problem - 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 207 000
Equipment 48 000
Fittings 30 000
Inventory 13 000
Goodwill 11 000
TOTAL CA 309 000
Gali Ltd calculated the value in use of the division to be: 276 000, If the Fair value less costs of disposal of the patent is: 199 011.
Prepare the journal entries for any impairment loss occuring at 30 June 2015 including supporting calculations.
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