AASB 136 & Impairment Loss for Cash Generating Units Analysis
VerifiedAdded on 2023/06/11
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Essay
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This essay provides a detailed analysis of impairment loss accounting for cash-generating units (CGUs) excluding goodwill, based on AASB 136 standards. It discusses the principles of impairment, the allocation of impairment loss, and the challenges in determining the recoverable value of individual assets within a CGU. The essay also addresses scenarios where machinery suffers physical damage and the implications for impairment assessment. It emphasizes the importance of considering both the fair value and the value in use when evaluating impairment, and it highlights the role of management's budget and future plans in determining the recoverable amount of assets. The document also contains calculations and journal entries for a case study of Gali Ltd and its fine china division, which has been determined to be a CGU. Desklib provides past papers and solved assignments for students.
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