Griffin Company, an IFRS reporter, holds a held- to-maturity investment at amortized cost of $ 250,000. The debt investment is classified as held- to- maturity. The cur-rent fair value of the The current fair value of the investment is $ 238,000 and the present value of the future cash flows from the debt investment is $ 241,000. Griffin establishes that there is objective evidence of impairment for IFRS impairment testing purposes.
Required
a. Does impairment exist?
b. I f impairment exists, what amount of loss will Griffin report in net income? What amount of loss will it report in other comprehensive income?
c. Prepare the journal entry for the impairment loss, if needed.