Beverly Hills Inc. has identified indicators of possible impairment on a depreciable asset and an intangible asset.

Information on each of these is provided below:

Depreciable asset -

Building ........................................................................................$560,000

Accumulated depreciation .........................................................(300,000)

Carrying value .............................................................................$260,000

Undiscounted future cash flows from use of asset .................$270,000

Value in use .......................................................................................220,000

Fair value ........................................................................................250,000

Costs of disposal ...............................................................................(12,000)

Indefinite Life Intangible Asset -

Carrying value ......................................................................................$120,000

Fair value ................................................................................................80,000

Direct costs to dispose of the trademark ........................................(20,000)

Value in use ........................................................................................100,000

Required -

Prepare any impairment loss journal entries required under IFRS and under ASPE. (Note that for ASPE, the first step is assumed met when dealing with an indefinite life intangible asset, i.e. just like goodwill)

Answer rating: 100% (QA)

IFRS IAS 36 value ASPE ASPE 3063 value An impairment loss is recognized when the Carrying Amount exceeds the Recoverable Amount Step 1 An impairment l... View the full answer