Penner, J. W., Kreuze, J. G., & Langsam, S. A. (2016). Impairment analysis: Comparison of impairment of long-lived assets between US GAAP and IFRS (Links to an external site.)Links to an external site.. Journal of the International Academy for Case Studies, 22(1), 97-102. Answer the following questions: Prepare a memorandum of the accounting requirements for the impairment of long-term assets under the US GAAP and IFRS including a comparison of the two methods. You must include citations from the Accounting Standards Codification (ASC) and the International Accounting Standards (IAS) in your memo. Treat your memo as a formal memo addressed to the Chief Financial Officer (CFO), which will also be reviewed by the companys auditors. In an Excel spreadsheet, create an estimate of the impairment calculation for December 31, 2012 that could be prepared by the company for the nine capsized vessels listed in Table 1, using the US GAAP and IFRS. For each of the estimates, provide support for using that estimate. Support for your estimates should come from the shipbroker reports, the companys filings with the Securities Exchange Commission, or other types of reliable information. Treat these estimates as if you were a staff accountant working at the company preparing these estimates for the CFO. As an Exhibit or Attachment to your memo in Question 1, and considering your answers for Question 2, also answer the following: Which of your required estimates have/will have the greatest impact on the companys impairment calculation using the US GAAP? Why? If the company prepared its financial statements following IFRS, does that change your calculation of the impairment loss and the amount of the estimate for impairment? Why or why not, and how so or how? In the December 21, 2012 financial statements, the company has not impaired the vessels. Do you agree with or disagree with the companys estimates? Why or why not? Which accounting standards, the US GAAP or IFRS, do you think provide more reliable financial statements regarding asset impairment? Be specific. How important is it that GAAP be consistent across countries? That is, do you feel it is imperative that the US GAAP and IFRS be consistent across countries around the world? Why or why not? What are the income tax implications of any impairment that could or should be recorded under the US GAAP and IFRS? Would there be any difference in the accounting for income taxes from the US GAAP compared to IFRS in this situation? Say this company was a publicly traded company, domiciled and operating out of Japan on the Tokyo Stock Exchange instead of out of New York in the United States. What are some the cultural differences one might expect with regards to the impairment issue you might face as the staff accountant analyzing and then reporting again on this issue to your CFO in Japan? Continuing the scenario from Question 5 (where the company is still a Japanese-based company), assume it was decided that an impairment loss should be reported in 2012 on the vessels. The company also prepares U.S.-dollar-based financial statements for internal and external use. At what exchange rate would the impairment loss be converted into U.S. dollars in the 2012 financial statements? Assume that some of the vessel losses unrelated to any recorded impairment losses recorded for accounting purposes can be recovered from the companys insurance company in the future in U.S. dollars. The company is uncertain when the insurance company will make payment in the future for some portion of the losses that were insured. What type of foreign currency instrument should the company execute to lock in this payment in Japanese yen? Explain in detail your rationale for the recommended type of instrument. Your Word document should be 8-10 pages in length (not including the required cover and references pages). Submissions in excess of 10 pages are permitted. Format your submission according to the CSU-Global Guide to Writing & APA (Links to an external site.)Links to an external site.. You may submit an Excel file as a separate file supporting your submission. If you wish or include Exhibits as part of your Word document submission supporting any quantitative calculations, include them as part of your submission. Be sure to discuss and reference concepts taken from the required and recommended readings throughout the course and also from your own relevant research. You must include a minimum of six credible, academic, or professional references beyond the course text, required and recommended readings, or other course materials.