Impairment of a CGU (Cash Generating Unit) Potters Ltd has determined that its fine china division is a CGU. The carrying amounts of the assets at 30 June 2016 are as follows: Factory $210 000 Land 150 000 Equipment 120 000 Inventories 60 000 Potters Ltd calculated the value in use of the division to be $510 000. Required: Provide the necessary journal entries for the impairment loss.

Impairment of a CGU (Cash Generating Unit) Potters Ltd has determined that its fine china division is a CGU. The carrying amounts of the assets at 30 June 2016 are as follows: Factory $210 000 Land...

Impairment of a CGU (Cash Generating Unit)

Potters Ltd has determined that its fine china division is a CGU. The carrying amounts of the assets at 30 June 2016 are as follows:

Potters Ltd calculated the value in use of the division to be $510 000.

Required:

Provide the necessary journal entries for the impairment loss.

Jun 09, 2022