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Animation Company Limited owns a trademark with an unlimited useful life. On December 31, 2023, due to a change in customer tastes, Animation Company gathered
Animation Company Limited owns a trademark with an unlimited useful life. On December 31, 2023, due to a change in customer tastes, Animation Company gathered the following data about the trademark for the purposes of an impairment test.
Carrying value $86,300
Fair value 57,000
Fair value less costs to sell 43,000
Value in use 97,000
a. | Assume that Animation Company is reporting under ASPE. Determine if the trademark is impaired on December 31, 2023. | |||
Impairment loss | = | |||
b. | Assume that Animation Company is reporting under IFRS. Determine if the trademark is impaired on December 31, 2023. | |||
Impairment loss |
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