At the end of $2023,$ Ayayai Corporation owns a licence with a remaining life of $10$ years and a carrying amount of $$500,000.$ Ayayai

expects undiscounted future cash flows from this licence to total $$504,000.$ The licence's fair value is $$396,000$ and disposal costs are

estimated to be nil. The licence's discounted cash flows $($that is$,$ value in use$)$ are estimated to be $$450,000.$ Ayayai prepares financial

statements in accordance with IFRS.

Your answer is partially correct.

Determine if the licence is impaired at the end of $2023.$

The licence

at the end of $2023.$

Prepare any related entry that is necessary. $($Credit account titles are automatically indented when the 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 debit entry before credit entry.$)$

Account Titles and Explanation

Debit

Credit

Loss on Impairment

Intangible Assets$-$Licences

eTextbook and Media

List of Accounts

Your answer is partially correct.

Assume the recoverable amount is calculated to be $$425,000$ at the end of $2024.$ Determine if the licence is impaired at the end of

The licence

at the end of $2024.$

Prepare any related entry that is necessary. $($Credit account titles are automatically indented when the 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 debit entry before credit entry.$)$

List of Accounts