Rice Industries owns a manufacturing plant in a foreign country. Political unrest in the country indicates that Rice should investigate for possible impairment. Below is information related to the plant's assets ($ in millions):

Book value	$	200
Undiscounted sum of future estimated cash flows		222
Present value of future cash flows		187
Fair value less cost to sell (determined by appraisal)		193

The amount of impairment loss that Rice should recognize according to U.S. GAAP and IFRS, respectively, is:

	U.S. GAAP				IFRS
a.	$	7	million		$	7	million
b.	$	13	million		$	13	million
c.	$	0			$	7	million
d.	There is no impairment under both U.S. GAAP and IFRS.

Multiple Choice

• Option A.

• Option B.

• Option C.

• Option D.