Refer to the situation described in E 1131, requirement 1. Alliant prepares its financial statements according to

Question:

Refer to the situation described in E 11–31, 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.

E 11–31

In 2019, Alliant Corporation acquired Centerpoint Inc. for $300 million, of which $50 million was allocated to goodwill. At the end of 2021, management has provided the following information for a required goodwill impairment test:

Fair value of Centerpoint Inc........................................................... $220 million
Book value of Centerpoint’s net assets (excluding goodwill) ........200 million
Book value of Centerpoint’s net assets (including goodwill) .........250 million

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