Reference no: EM132555182

BlueWhale Ltd with its diverse business operations has identified that its retail division is a single cash-generating unit (CGU). As at 30 June 2020, the carrying amounts of the CGU's assets are detailed below:

Building 180

Accm. Depreciation - building (80)

Vehicle 100

Accm. Depreciation - vehicle (40)

Brand name 40

Inventory 50

Goodwill 10

An independent valuer estimates the recoverable amount of the building to be $90. At 30 June 2020, based on expert prediction on market conditions and the CGU's past performance, the management concludes that the fair value of the CGU is around $200. Costs directly associated with the CGU disposal is estimated at $10. The present value of net cash inflows expected to be generated from the CGU is estimated to be $200. For the fiscal year ending 30 June 2021, the depreciation charges on building and vehicle were $9 and $7, respectively. If building and vehicle had not been impaired the depreciation charges would have been $11 and $10, respectively.

At 30 June 2021, the recoverable amount of the CGU was calculated to be $13 greater than the carrying amount of the assets of the CGU. As a result, the company recognised a reversal of the previous year's impairment loss.

Required:

Question (a) Provide the journal entries for the company according to AASB 136 Impairment of Assets as at 30 June 2020