Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Exercise 11-32 (Algo) IFRS; impairment; goodwill [LO11-10) In 2019, Alliant Corporation acquired Centerpoint Inc. for $436 million, of which $66 million was allocated to goodwill.

image text in transcribed
Exercise 11-32 (Algo) IFRS; impairment; goodwill [LO11-10) In 2019, Alliant Corporation acquired Centerpoint Inc. for $436 million, of which $66 million was allocated to goodwill. At the end of 2021, management has provided the following information for a required goodwill impairment test: Fair value of Centerpoint Inc. $338 million Book value of Centerpoint's net assets (excluding goodwill) 304 million Book value of Centerpoint's net assets (including goodwill) 370 million Alliant prepares its financial statements according to IFRS, and Centerpoint is considered a cash-generating unit. Assume that Centerpoint's fair value of $338 million approximates fair value less costs to sell and that the present value of Centerpoint's estimated future cash flows is $343 million. Required: Determine the amount of goodwill impairment loss Alliant should recognize. (Negative amount should be indicated by a minus sign. Enter your answer in millions (i.e., 10,000,000 should be entered as 10)). Impairment loss million

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accountancy Analysis Of Financial Statements Analysis Of Financial Statements

Authors: M. Hanif, A. Mukherjee

1st Edition

1642879762, 9781642879766

More Books

Students also viewed these Accounting questions

Question

List the components of the strategic management process. page 77

Answered: 1 week ago