Question
Collison and Ryder Company (C&R) has been experiencing declining market conditions for its sportswear division. Management decided to test the assets of the division
Collison and Ryder Company (C&R) has been experiencing declining market conditions for its sportswear division. Management decided to test the assets of the division for possible impairment. The test revealed the following book value of division's assets, $271 million; fair value of division's assets. $21.3 million. Assume that the present value of the estimated future cash flows generated from the division's assets is $22.3 million and that their fair value approximates fair value less costs to sell. What amount of impairment loss should C&R recognize if the company prepares its financial statements according to IFRS? (Enter your answer in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).) Impairment loss million
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