CGU Impairment

1. A cash generating unit has been assessed for impairment and determined an impairment loss of taka 12,000. The carrying amounts of the assets were as follows: Buildings 500,000 Equipment 300,000 Land 250,000 Fittings 150,000 Fair value less cost to sell of the assets was as follows: Buildings 497,000 Equipment 298,000 Land 245,000 Fittings 148500 Give the journal entries to reflect the recognition of impairment loss. Suppose remaining economic life of Building, equipment and fittings were 10, 8 and 5 years respectively with zero salvage value. Company follows straight line method of deprecation. At the end of next year there is a reversal of impairment loss of taka 5000. Allocate the reversal assuming that individual recoverable amount of the unit can not be determined.