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Declarmen Corporation owns factory in the United Kingdom. A change in business climate indicates that Declarmen should investigate for possible impairment. Below are date related

Declarmen Corporation owns factory in the United Kingdom. A change in business climate indicates that Declarmen should investigate for possible impairment. Below are date related to the factorys assets ($ in millions):

Book value $ 570
Undiscounted sum of future estimated cash flows 630
Present value of future cash flows 525
Fair value less cost to sell (determined by appraisal) 540

The amount of impairment loss that Declarmen should recognize according to International Financial Reporting Standards is:

Multiple Choice

  • None.

  • $30 million.

  • $60 million.

  • $45 million.

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