It is now December 31, 2019 and you are testing goodwill impairment for New Venture's Ltd, consolidated financial statements. You determine the cash-generating unit's values (including goodwill) are as follows: 

Carrying amount $500,000 

Value in use $475,000 

Fair value $450,000 

Disposal costs $25,000 

REQUIRED: 

Determine if there is any impairment and prepare any necessary journal entries on December 31, 2019. New Venture follows IFRS

Answer rating: 100% (QA)

Impairment occurs when the carrying value of the asset is less than the recove... View the full answer