As a result of its annual assessment of property, plant, and equipment for indications of impairment, an entity determines that equipment with a carrying amount of $43,000 (cost of $58,000; accumulated depreciation of $15,000) may be impaired due to technological obsolescence. Assume that the asset's value in use is determined to be $36,000 and its fair value less costs of disposal (of $1,700) is $38,800. In addition, the expected future undiscounted net cash flows from the use of the asset and its later disposal are estimated to be $40,900. (a1) Your answer is correct. Compare the accounting for impairment of the equipment under IFRS versus ASPE. Impairment loss $ IFRS 4200 ASPE 2500

Prepare the entry to record the impairment loss under both sets of standards. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) IFRS: Account Titles Loss on Impairment Accumulated Depreciation Equipment ASPE: Account Titles Loss on Impairment Accumulated Depreciation - Equipment Debit I Debit Credit Credit

As a result of its annual assessment of property, plant, and equipment for indications of impairment, an entity determines that equipment with a carrying amount of $43,000 (cost of $58,000; accumulated depreciation of $15,000 ) may be impaired due to technological obsolescence. Assume that the asset's value in use is determined to be $36,000 and its fair value less costs of disposal ( of $1,700 ) is $38,800. In addition, the expected future undiscounted net cash flows from the use of the asset and its later disposal are estimated to be $40,900. (a1) Your answer is correct: Compare the accounting for impairment of the equipment under IFRS versus ASPE. Prepare the entry to record the impairment loss under both sets of standards. (Credit account titles are outomatically indented when amount is entered. Do not indent manualin. If no entry is required, select "No Entry" for the account titles and enter O for the amounts, List all debit entries before credit entries)