Evergreen Corporation has $95 million of goodwill on its books from the 2015 acquisition of Nova...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Evergreen Corporation has $95 million of goodwill on its books from the 2015 acquisition of Nova Motors. At the end of its 2016 fiscal year, management has provided the following information for its annual goodwill impairment test ($ in millions): Fair value of Nova Fair value of Nova's net assets (excluding goodwill) Book value of Nova's net assets (including goodwill) $860 $800 $900 Assume that Nova is considered a reporting unit for U.S. GAAP and a cash-generating unit for IFRS. What is the amount of goodwill impairment loss that Evergreen should recognize according to U.S. GAAP? (1 point) b. What is the amount of goodwill impairment loss that Evergreen should recognize according to IFRS? Assume the fair value less costs to sell is $850 million and the value in use is $890 million. (1 point) Evergreen Corporation has $95 million of goodwill on its books from the 2015 acquisition of Nova Motors. At the end of its 2016 fiscal year, management has provided the following information for its annual goodwill impairment test ($ in millions): Fair value of Nova Fair value of Nova's net assets (excluding goodwill) Book value of Nova's net assets (including goodwill) $860 $800 $900 Assume that Nova is considered a reporting unit for U.S. GAAP and a cash-generating unit for IFRS. What is the amount of goodwill impairment loss that Evergreen should recognize according to U.S. GAAP? (1 point) b. What is the amount of goodwill impairment loss that Evergreen should recognize according to IFRS? Assume the fair value less costs to sell is $850 million and the value in use is $890 million. (1 point)
Expert Answer:
Answer rating: 100% (QA)
Step 11 a Calculation of Goodwill Impairment loss as per US GAAP ... View the full answer
Related Book For
Intermediate accounting
ISBN: 978-0077647094
7th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
Posted Date:
Students also viewed these accounting questions
-
The records of Earthly Goods provided the following information for the year ended December 31, 2014. Required: 1. Prepare an estimate of the company's year-end inventory by the retail method. Round...
-
The records of HKL Company provided the following information for the year ended 31 December 20X8: Additional information: a. Sold equipment for cash (cost, $ 15,000; accumulated depreciation, $...
-
The records of Earthly Goods provided the following information for the year ended December 31, 2020. Required 1. Prepare an estimate of the company?s year-end inventory by the retail method. Round...
-
what is the name of Dc output symbol on eagle in this circuit? XL2 EE20 core Flyback Transformer 4 SCHOTTKY [ 3 D4 SB160 IC2 EL817 OPTOCOUPLER thS 1 2 C2 470uF 25V R3 Tko ZD1 12V/1W DC Output 12V,...
-
What are the differences between a parallel loan and a fronting loan?
-
Stenback Pro Company managers received the following incomplete performance report: Requirement 1. Complete the performance report. Identify the employee group that may deserve praise and the group...
-
In July 2008, Brian, Dale, and Sandra Allen signed a contract with East Resources, Inc., concerning 148 acres of the Allens property. East wanted to develop and exploit the oil and gas resources...
-
Current Liabilities The following items represent liabilities on a firms balance sheet: a. An amount of money owed to a supplier based on the terms 2/20, n/40, for which no note was executed. b. An...
-
Why are both ER Diagrams and Relational Modeling needed when a database system is developed?
-
Its been 2 months since you took a position as an assistant financial analyst at Caledonia Products. Although your boss has been pleased with your work, he is still a bit hesitant about unleashing...
-
Stratified samples are widely used to study large areas of forest. Based on satellite images, a forest area in the Amazon basin is divided into 14 types. Foresters studied the four most commercially...
-
It is possible that Joe and Bob have not maximized their profit in May if they have market power. In order to maximize their profit, they may need to adjust their pricing. It is important to note...
-
Wildhorse tested the equipment for impairment on December 3 1 , 2 0 2 4 , after recording the annual depreciation expense. It was determined that the equipments recoverable amount was $ 3 4 9 , 0 0 0...
-
Why are Republican and Democratic politicians more likely to respond to more affluent, wealthier individuals? Explain briefly
-
Why are safeguards an essential part of most trade agreements? What are countervailing and antidumping duties, and what must a country demonstrate to impose them?
-
What were the terms of China's admission to the WTO, and has its admission been good for China and the WTO? Why is Russia still not a WTO member? What are some of China's and Russia's trade conflicts...
-
Andrew walks along a road which can be modeled by the equation y = 6x, where (0, 0) represents his starting point. When he reaches the point (12, 72), he turns right, so that he is traveling...
-
You are maintaining a subsidiary ledger account for Police-Training Expenditures for 2013. The following columns are used: Inventory purchases are initially recorded as expenditures. Record the...
-
The following questions are adapted from a variety of sources including questions developed by the AICPA Board of Examiners and those used in the Kaplan CPA Review Course to study property, plant,...
-
Air FranceKLM (AF), a French company, prepares its financial statements according to International Financial Reporting Standards. AFs annual report for the year ended March 31, 2011, which includes...
-
Each of the following situations occurred during 2013 for one of your audit clients: 1. The write-off of inventory due to obsolescence. 2. Discovery that depreciation expenses were omitted by...
-
In recent years, Keflavik Paper Company has been having problems with its project management process. Several commercial projects, for example, have come in late and well over budget, and product...
-
Your firm has the opportunity to invest $75,000 in a new project opportunity but due to cash flow concerns, your boss wants to know when you can pay back the original investment. Using the discounted...
-
Pracht, a popular cosmetics company in Germany, has been performing favorably and growing at a constant rate, with profits exceeding $900,000 in the last financial year. The company now wants to...
Study smarter with the SolutionInn App