need net income for years 2016 2017 ans 2018 under IFRS

10-20 - Protected View - Saved to this PC- O Search ces Mailings Review View Help ain viruses. Unless you need to edit, it's safer to stay in Protected View. Enable Editing You are the CFO for Periwinkle company (reporting using IFRS) and must reconcile your financial statements for the years ending 2016, 2017, and 2018 to U.S. GAAP (The Income Statement and Statement Stockholders' Equity). You have identified the following 3 areas where there are differences between IFRS and U.S. GAAP at various dates. Be sure to consider the cumulative effects of prior year transactions for each year. Intangible Assets As part of a business combination in January 2012, the company acquired a brand for $30,000,000. The brand is classified as an intangible asset with a 30- year useful life. At year-end 2016 the brand is determined to have a selling price of $23,000,000 with $2,000,000 cost to sell. Expected future cash flows from continued use of the brand are $27,000,000 (undiscounted) and the present value of future cash flows is 22,000,000 Research and Development Costs The company incurred research and development costs of $10,000,000 in 2016. Of this amount, 65% related to development activities subsequent to the point at which criteria had been met that an intangible asset existed. The development costs were completed at the end of 2016 and will be amortized over 10 years beginning 2017 Investment Property On January 1, 2016, the company purchases an investment property on which it will collect rent. The cost of the building is $30,000,000 and has an estimated useful life of 30 years with no salvage value. The fair value of the building for the three years is as follows: 2016 $33,000,000 2017 $35.000.000 2018 $38,000,000 013