what is the carrying value of the intangible assts at December 31, 2020?
On January 1, 2020, Ella Company acquired the following intangible assets:
• A trademark for P2,000,000. The trademark has 8 years remaining in its legal life. It is anticipated
that the trademark will be renewed in the future, indefinitely, without a problem.
• A patent for P4,000,000. Because of market condition, it is expected that the patent will have
economic life for just 5 years, although the remaining legal life is 10 years.
On December 31, 2020, the intangible assets are assessed for impairment. Because of a decline in the
economy, the trademark is expected to generate
of the trademark still extends beyond the foreseeable horizon. The cash flows expected to be
generated by the patent are P500,000 annually for each of the next four years.
The appropriate discount rate for all intangible assets is 8%. Ella Company shall recognized a total
impairment loss in 2020 at
If the entity is an SME, what is the carrying value of the intangible assts at December 31, 2020?
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