Question: Aero Ltd has determined that its aviation division is a cashgenerating unit (CGU). Information as at 30th June 2020 is as follows: $ Buildings
Aero Ltd has determined that its aviation division is a cash–generating unit (CGU). Information as at 30th June 2020 is as follows:
$ Buildings – At cost 600,000
Equipment – At cost 500,000
Inventory 25,000
Land 250,000
Receivables 150,000
Goodwill 90,000
Total 1,615,000
Additional information:
Buildings - Accumulated depreciation as at 30 June 2020: $100,000
Equipment - Accumulated depreciation as at 30 June 2020: $200,000
Aero Ltd calculated the value in use for the division to be $515,000
Required:
a) Calculate the impairment loss as at 30 June 2020
b) Prepare a table as provided below to allocate the above impairment loss
| Assets | Carrying Amount | Proportion | loss allocated | Adjusted carrying amount |
| Total |
c) Prepare a general journal (as per template below) to record the above impairment loss for the year ended 30 June 2020. Include a narration
General Journal template:
| Date | Details | Debit $ | Credit $ |
Step by Step Solution
There are 3 Steps involved in it
To address this problem follow the steps below Step 1 Calculate the Impairment Loss First determine the carrying amount of the CGU before impairment B... View full answer
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