Intangible Assets Problem #4 Zerex Company has one operating segment (reporting unit) that is comprised of two cash generating units (CGUs), as defined under IFRS. Zerex carries CGU1 at a value of $5 million, which includes $1 million of goodwill. The fair value of CGU 1 is $8 million and its recoverable amount is $8 million. Zerex carries CGU2 at a value of $5.5 million, which includes $1.5 million attributable to goodwill. The fair value of CGU2 is $5 million and its recoverable amount is $5 million.

Required: Compute the amount of impairment loss Zerex should record, if any, under (a) IFRS and (b) U.S. GAAP.