9th Edition

ISBN: 9781260681956

Author: SPICELAND

Publisher: MCG

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Textbook Question

Chapter 11, Problem 11.31E

IFRS; impairment; goodwill

• LO11–10

IFRS

Refer to the situation described in E 11–30, requirement 1. Alliant prepares its financial statements according to IFRS, and Centerpoint is considered a cash-generating unit. Assume that Centerpoint’s fair value of $220 million approximates fair value less costs to sell and that the present value of Centerpoint’s estimated future cash flows is $225 million.

Required:

Determine the amount of goodwill impairment loss Alliant should recognize.

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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Chapter 11, Problem 11.30E

Chapter 11, Problem 11.32E

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Chapter 11 Solutions

INTERMEDIATE ACCOUNTING, W/CONNECT

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Solution Summary: The author explains that impairment of goodwill is recognized when an asset's book value exceeds the higher of its value-in-use (the present value of future cash flows) and fair value less the cost to sell.

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