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Patterson Industries owns a manufacturing plant in a foreign country. Political unrest in the country indicates that Silver should investigate for possible impairment. Below is
Patterson Industries owns a manufacturing plant in a foreign country. Political unrest in the country indicates that Silver should investigate for possible impairment. Below is information related to the plant's assets (in millions Book value $ 213 Undiscounted sum of future estimated cash flows 226 Present value of future cash flows 191 Fair value less cost to sell (determined by appraisal) 195 The amount of impairment loss that Silver should recognize according to U.S. GAAP and IFRS, respectively, is: U.S. GAAP: $0 million; IFRS: $18 million. U.S. GAAP: 522 million; IFRS: $22 million U.S. GAAP: 50 million; IFRS: 50 million U.S. GAAP: $18 million IFRS: $18 million
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