Use the same information from E12- 4 but now treat SMC Research Associates as an IFRS reporter.
In E 12 - 4

Required
a. Compute the impairment loss ( if any) for each intangible asset.
b. Prepare the journal entry necessary to record the impairment loss.
c. Assuming that SMC amortizes its finite- life intangible assets by using the straight- line method, with no scrap value, prepare the journal entry to record the annual amortization for the first year subsequent to the impairment write- down.

Intangible Asset Franchise Patent Trada name Net Carrying Value S 850,000 Remaining Life 5 years 3 years NIA 400,000 3,950,000 $5.200,000 Total Future Period Year 1 Year 2 Year 3 Year 4 Year 5 Total Franchise $300,000 220.000 110,000 45,000 25,000 $700,000 Patent Trade Name $280,000 $ 800,000 610,000 590,000 510,000 365,000 90,000 $380,000 2.875,000