Required: Indicate the differences in accounting treatment under IFRS and under US GAAP for the following situations as of December 31, 2022: 3. Intangible assets As part of a business combination in 2019, the company acquires a brand with a market value of $40,000. The brand is classified as an intangible asset with an indefinite life. In the year 2022, it was determined that the brand has: - a sale price of $35,000 with $0 costs to sell - Expected future cash flows from continued use of the $42,000 brand - Present value of future cash flows of $34,000
Required: Indicate the differences in accounting treatment under IFRS and under US GAAP for the following situations as of December 31, 2022: 3. Intangible assets As part of a business combination in 2019, the company acquires a brand with a market value of $40,000. The brand is classified as an intangible asset with an indefinite life. In the year 2022, it was determined that the brand has: - a sale price of $35,000 with $0 costs to sell - Expected future cash flows from continued use of the $42,000 brand - Present value of future cash flows of $34,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Required: Indicate the differences in accounting treatment under IFRS and under US GAAP for
the following situations as of December 31, 2022:
3. Intangible assets
As part of a business combination in 2019, the company acquires a brand with a market value of
$40,000. The brand is classified as an intangible asset with an indefinite life. In the year 2022, it
was determined that the brand has:
- a sale price of $35,000 with $0 costs to sell
- Expected future cash flows from continued use of the $42,000 brand
- Present value of future cash flows of $34,000
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