#4-CH 12 INTANGIBLE ASSETS AND IMPAIRMENT On September 1, 2023, Mona Lisa Corp., a public company,...

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#4-CH 12 INTANGIBLE ASSETS AND IMPAIRMENT On September 1, 2023, Mona Lisa Corp., a public company, purchased Jaramoil Enterprises for $763,000 cash. At the time of purchase, Jaramoil's SFP showed assets of $850,000, liabilities of $430,000 and shareholders' equity of $420,000. The fair value of Jaramoil's identifiable assets is estimated to be $1,080,000. REQUIRED: a) Calculate the amount of goodwill purchased by Mona Lisa. b) Assume the purchased company was folded into an existing Cash Generating Unit ("CGU") including the goodwill as indicated below. The CGU's 'value in use' at the balance sheet date was $3,850,000 and 'fair value less cost to sell' was $4,250,000. Determine if goodwill is impaired and prepare a JE, if needed. Assets other than goodwill Goodwill Carry value of CGU CGU $4,500,000 $ 113,000 $ 4,613,000 c) Explain how a future reversal of impairment is accounted for under IFRS. #4-CH 12 INTANGIBLE ASSETS AND IMPAIRMENT On September 1, 2023, Mona Lisa Corp., a public company, purchased Jaramoil Enterprises for $763,000 cash. At the time of purchase, Jaramoil's SFP showed assets of $850,000, liabilities of $430,000 and shareholders' equity of $420,000. The fair value of Jaramoil's identifiable assets is estimated to be $1,080,000. REQUIRED: a) Calculate the amount of goodwill purchased by Mona Lisa. b) Assume the purchased company was folded into an existing Cash Generating Unit ("CGU") including the goodwill as indicated below. The CGU's 'value in use' at the balance sheet date was $3,850,000 and 'fair value less cost to sell' was $4,250,000. Determine if goodwill is impaired and prepare a JE, if needed. Assets other than goodwill Goodwill Carry value of CGU CGU $4,500,000 $ 113,000 $ 4,613,000 c) Explain how a future reversal of impairment is accounted for under IFRS.