Corporate Finance and Reporting

Running head: CORPORATE FINANCE AND REPORTING
Corporate Finance and Reporting
Name of the Student:
Name of the University:
Authors Note:

CORPORATE FINANCE AND REPORTING
1
Table of Contents
Part A: (Impairment loss for cash generating units excluding Goodwill).................................2
Part B: Journal entries prepared for the impairment loss occurring in 30 June 2015................4
Reference and Bibliography:......................................................................................................7

CORPORATE FINANCE AND REPORTING
2
Part A: (Impairment loss for cash generating units excluding Goodwill)
Goodwill is relatively considered as not and impairment loss that needs to be carried
on during the calculation from the carrying amount of an asset of cash generating unit. The
calculations relatively indicate that the impairment loss is relatively depicted on units such as
plant, brand, and fittings, which are relatively considered one of the cash generating units for
an organisation. The impairment loss is relatively calculated by detecting the carrying amount
of the Asset or cash generating units which is derived after deducting depreciation and
impairment loss of a particular asset. However, certain factors such as recoverable amount,
net selling value, carrying amount and depreciation amount can be used for detecting the
overall impairment loss that an organisation has faced during the fiscal year. The impairment
loss relatively indicates the future declining value of a particular asset, which is considered as
a cash generating unit by the organisation. The impairment loss is calculated with the help of
IAS 36 regulation which indicates the different methods that can be used by companies to
detect their impairment loss in the balance sheet and income statement. This irrelevant
depiction of impairment loss in the financial accounts relatively reduces their financial
strength over time as the assets are the values and losses incurred by the company. From the
evaluation it is indicated that impairment loss is those amount, which exceeds future
undisclosed value of a particular assets the organisation (Chen 2018).
Adequate recognition method is a relatively depicted in IAS 36, which is used by
companies to detect the impairment loss of their assets. Moreover, the carrying amount value
is relatively considered before declaring an impairment loss, as the value needs to be created
and the recoverable amount of the assets. The impairment loss calculated by the organisation
is reflected in the comprehensive income statement, where IAS 16 standard directly in the
kids be fair value method which needs to be maintained by the organisation. The fair value