Repeat E16-23 assuming that Regal Inc. reports under IFRS. Data from E16-23 Regal Inc., a U.S. GAAP

Question:

Repeat E16-23 assuming that Regal Inc. reports under IFRS.

Data from E16-23

Regal Inc., a U.S. GAAP reporter, holds an equity investment with a carrying value of $107,250. This investment is not publicly traded and Regal has elected to carry it at adjusted cost. At December 31, 2016, the fair value of the investment is $98,000, which was estimated by using a discounted cash flow valuation. Assume that Regal determines that the investment is impaired. What is the amount of the impairment? Where does Regal report the impairment loss?

Discounted Cash Flows
What is Discounted Cash Flows? Discounted Cash Flows is a valuation technique used by investors and financial experts for the purpose of interpreting the performance of an underlying assets or investment. It uses a discount rate that is most... GAAP
Generally Accepted Accounting Principles (GAAP) is the accounting standard adopted by the U.S. Securities and Exchange Commission (SEC). While the SEC previously stated that it intends to move from U.S. GAAP to the International Financial Reporting Standards (IFRS), the...

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