As a result of its annual assessment of property, plant, and equipment for indications of impairment, an entity determines that equipment with a carrying amount of $46,000 (cost of $62,000; accumulated depreciation of $16,000) may be impaired due to technological obsolescence. Assume that the asset's value in use is determined to be $38,600 and its fair value less costs of disposal (of $2,100) is $41,200. In addition, the expected future undiscounted net cash flows from the use of the asset and its later disposal are estimated to be $44,100. (a1) Compare the accounting for impairment of the equipment under IFRS versus ASPE IFRS Impairment loss ASPE
As a result of its annual assessment of property, plant, and equipment for indications of impairment, an entity determines that equipment with a carrying amount of $46,000 (cost of $62,000; accumulated depreciation of $16,000) may be impaired due to technological obsolescence. Assume that the asset's value in use is determined to be $38,600 and its fair value less costs of disposal (of $2,100) is $41,200. In addition, the expected future undiscounted net cash flows from the use of the asset and its later disposal are estimated to be $44,100. (a1) Compare the accounting for impairment of the equipment under IFRS versus ASPE IFRS Impairment loss ASPE
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![As a result of its annual assessment of property, plant, and equipment for indications of impairment, an entity determines that
equipment with a carrying amount of $46,000 (cost of $62,000; accumulated depreciation of $16,000) may be impaired due to
technological obsolescence. Assume that the asset's value in use is determined to be $38,600 and its fair value less costs of disposal
(of $2,100) is $41,200. In addition, the expected future undiscounted net cash flows from the use of the asset and its later disposal are
estimated to be $44,100.
(a1)
Compare the accounting for impairment of the equipment under IFRS versus ASPE
IFRS
Impairment loss
ASPE](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4868efb3-301a-45aa-92a4-e5ee5775227f%2Fd61fa41a-d749-4dbb-a0fb-50a1cd2c96ab%2Ft3x99yh_processed.jpeg&w=3840&q=75)
Transcribed Image Text:As a result of its annual assessment of property, plant, and equipment for indications of impairment, an entity determines that
equipment with a carrying amount of $46,000 (cost of $62,000; accumulated depreciation of $16,000) may be impaired due to
technological obsolescence. Assume that the asset's value in use is determined to be $38,600 and its fair value less costs of disposal
(of $2,100) is $41,200. In addition, the expected future undiscounted net cash flows from the use of the asset and its later disposal are
estimated to be $44,100.
(a1)
Compare the accounting for impairment of the equipment under IFRS versus ASPE
IFRS
Impairment loss
ASPE
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