Assume that a company's Broadcast license is renewable at the end of each 10 year term and management has provided evidence that approval of the renewal is highly likely. The brock has license qualifies as an indefinite life intangible asset not subject to amortization. Therefore the firm carries the broadcast license original cost of $780,000. Assuming that renewal a broadcast license is probable analyze the accounting for impairment under IFRS and prepare the journal entry assume no disposal cost

Step one recoverable amount options are carrying value at year-end,fair value at year-end, fair value less costs to sell, Undiscounted the future cash flow's, value and use

Step two, impairment indicated if any, same options carry value,discounted future cash flow's, fair value, recoverable amount, and in discounted future cash flow's

Step three prepare journal entry options are your entry required accumulated depreciation broadcast license, fair value a broadcast license, impairment gain on broadcast license, impairment loss on broadcast license, and renewable broadcast license

6 of 10 dcast license is renewable at the end of each 10-year term and management provided evider an indefinite-life intangible asset and is not subject to amortization. Therefore, the firm carries i More Info On December 31, 2015, the company noted substantial declines in radio advertising revenues since the past year due to expanded satellite radio subscriptions, Internet broadcasts, and the use of iPod players. Based on the required annual review and consideration of the available impairment indicators management believes that it should review the broadcast license for impairment Similar broadcast licenses have been sold in auctions for $676,000. Management estimates the present value of the future cash flows to be $688,000 Print Done pairment loss cell blank: f you selected No that an impairment loss is not indicated then leave nber in the input fields and then continue to the next question DOLL 6 of 10 dcast license is renewable at the end of each 10-year term and management provided evider an indefinite-life intangible asset and is not subject to amortization. Therefore, the firm carries i More Info On December 31, 2015, the company noted substantial declines in radio advertising revenues since the past year due to expanded satellite radio subscriptions, Internet broadcasts, and the use of iPod players. Based on the required annual review and consideration of the available impairment indicators management believes that it should review the broadcast license for impairment Similar broadcast licenses have been sold in auctions for $676,000. Management estimates the present value of the future cash flows to be $688,000 Print Done pairment loss cell blank: f you selected No that an impairment loss is not indicated then leave nber in the input fields and then continue to the next question DOLL