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I tried to do the impairment loss assets calculation. Can you give me back some feedback whether I did it right or wrong. Thanks. I spent time to look at the question(impairment loss assets how to calculate). 3 divisions, A, B, and C, which operate independently of each other to produce electronic products. Each is considered a cash generating unit (CGU)*

The company has a head office and a research centre located in Sydney, with the divisions located throughout Australia. The research centre assists all divisions to improve the manufacturing process and the quality of products made.

At present there is no basis on which to determine how the research centre’s assets below should be nominally allocated to each division for product costings or for any adjustments for changes in asset values. The company head office provides equal services to all divisions meaning an allocation of 1/3 to each is fair. Head office provides an immaterial amount of services to the research centre. Neither the research centre or headquarters generate cash flows. On 30 June 2010 the net assets of Big Ltd were as follows:
Division A Division B Division C Head office Research centre
Real estate 440 000 280 000 160 000 110 000 67 000
Plant & equip. 840 000 620 000 540 000 80 000 45 000
Accumulated depreciation (240 000) (200 000) (160 000) (10 000) (12 000)
Inventories 240 000 180 000 140 000 0 0
Accounts receivable 120 000 100 000 60 000 0 0
1 400 000 980 000 740 000 180 000 100 000
Liabilities 120 000 100 000 100 000 0 0
Net assets 1 280 000 880 000 640 000 180 000 100 000
Big’s management believes that the company’s assets have been impaired. The value in use of assets has been assessed for each division below:
Division A $1 550 000
Division B $1 000 000
Division C $ 750 000
The real estate held by division A was measured at fair value using the revaluation model because of the specialised nature of the real estate and at 30 June 2010, the fair value was $440 000. The real estate held by division B was measured at cost, and had fair value less costs to sell of $277 264 at 30 June 2010.

Required:
Your task is to determine how Big Ltd should account for any impairment. You need to justify your decisions and provide any required journal entries. Use the list below to guide you.
1/ Construct 1 table showing the calculations revealing whether each division has had an impairment loss or not.
2/ Construct 1 table for each division that has an impairment loss. The table must show the allocations of the impairment loss to the allowable assets of the division and the adjusted carrying amount of each asset that has been written down. It must also show the allocation of the impairment loss to its share of head office assets.
3/ Write the necessary impairment loss general journal entry for each division in above for the division’s assets.
4/ Construct 1 table for head office that shows the calculations of the impairment losses for each head office individual asset that has been written down and its adjusted carrying amount.
5/ Write the necessary impairment loss general journal entry for head office in (d) above.
For this assignment there is no need to adjust the asset values of the Research centre.
* CGU: the smallest identifiable group of assets generating cash inflows and outflows that can be measured. Each division is a CGU.
My question is how do I calculate the carrying amount and recoverable amount. My way is (carrying amount= Real Estate+Pant&Equip+add more head office service)
Division A: 440,000+840,000+60,000=1340000<value in use1550000=>no impairment loss for division A. DivisionB:277,264+620,000+60,000=957264<100,000=>n o impairment loss. Division C: 160,000+540,000+60,000=760,000>750,000 impairment loss $10,000. Am I right? I'm sure whether I should deduct the accumulate dep or not and I should add more head office service or not. How do I know which item should I revaluation. Is it only non-current asset? May you help me with my problem. Thanks in advance. I am looking forward to hearing your help.