Lenny Schaeffer Bakeries, an IFRS reporter, is required to test goodwill for impairment each year The current carrying value of its reported goodwill is $ 800,000 The goodwill pertains to the cash generating unit The book value of the net assets of the cash generating unit, excluding goodwill , is ...

The IFRS goodwill impairment test is a onestep test with two parts Part 1 To asse ...

Lenny Schaeffer Bakeries, an IFRS reporter, is required to test goodwill for impairment each year. The current

Question:

Lenny Schaeffer Bakeries, an IFRS reporter, is required to test for impairment each year. The current carrying value of its reported is $ 800,000. The pertains to the cash- generating unit. The book value of the net assets of the cash- generating unit, excluding , is equal to $ 1,200,000. The fair value of the cash- generating unit (less costs to sell) is $ 2,200,000. Its value in use is $ 2,150,000. Determine if Schaeffer’s is impaired. Goodwill
Goodwill is an important concept and terminology in accounting which means good reputation. The word goodwill is used at various places in accounting but it is recognized only at the time of a business combination. There are generally two types of...