Accounting Research Case
Fall 2024
Question	Description
1	What do we mean by the impairment
	of a long-lived asset?
2	How should assets be grouped when
	testing and computing an impairment
	loss for long-lived assets?
3	When should an impairment loss be
	recognized for a long-lived asset?
4	Under US GAAP, what part of the
	the process under Question 3 above
	does not make any sense?
5	Under Question 3 above, when should
	a long-lived asset or asset group
	be tested for recoverability? Are the
	recoverability conditions met for
	The Crusin Lines Case?
6	Calculate the US GAAP impairment
	loss (if any) for the Dreamer at
	March 31, 2019. Use the three
	estimates of undiscounted cash flows
	provided in the case (Most Likely,
	Midpoint, Low Value). Use the
	market approach to estimating fair
	value. Present your results in a table
	that show the recoverability test,
	impairment loss, and book value
	after impairment loss (if any).
7	Provide a journal entry to record any
	impairment losses in Question 6 above.
8	What are the possible valuation
	techniques that you can use to
	measure fair value?
9	What do we mean by the fair value
	hierarchy when using the market
	approach? What levels of the
	of the hierarchy are most preferred
	to use? Least preferred?
	What levels in the hierarchy did you
	use in your calculations in Question
	6 above?
10	What asset or asset group level did
	Kayla use to test for impairment in the case? Do you agree
	with her decision and why or why
	not?
11	Given the facts of the case, should
	the Company test for Goodwill
	Impairment? At what level should
	this test be conducted? How does
	your answer affect Question 6
	above?
12	Calculate the IFRS impairment loss
	(if any) for the Dreamer. Use the
	most likely, midpoint, and low
	point of the range for cash flows. Present your
	results in a table showing the
	impairment loss and book value
	(carrying amount) for
	March 31, 2019.
13	How does your answer to Question 12
	differ from Question 6 above? What
	are the differences between US GAAP
	IFRS?
14	What are the valuation issues (problems)
	involved with your answers to
	Questions 6 and 11 above?
15	What pressures will Kayla likely face
	if she recommends showing an
	impairment loss?