The following is net asset information for the Dhillon Division of Klaus Inc.: NET ASSETS as at December 31, 2020 (in millions) Book Value $ 55 Fair Value Excluding Goodwill $ 55 222 2,808 222 Cash Accounts receivable Property, plant, and equipment (net) Goodwill Less: Notes payable Net assets 2,647 218 (2,619) $ 523 (2,619) The purpose of the Dhillon Division (also identified as a reporting unit or cash-generating unit) is to develop a nuclear-powered aircraft. If successful, travelling delays that are associated with refuelling could be greatly reduced, and operational efficiency would increase significantly. To date, management has not had much success and is deciding whether a writedown is appropriate at this time. Management has prepared the following estimates for the reporting unit or cash-generating unit: 1. Undiscounted future net cash flows are approximately $413 million. 2. Future value in use is approximately $519 million. 3. Sale of the unit would yield $348 million and selling costs would total $3 million. Under ASPE, determine if there is any impairment and prepare any necessary entry on December 31, 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter o for the amounts. Enter amounts in millions.) Debit Credit Date Account Titles and Explanation Dec. 31, 2020 SHOW LIST OF ACCOUNTS On December 31, 2021, it is estimated that the reporting unit's fair value has increased to $413 million. Under ASPE, prepare the journal entry, if any, to record the increase in fair value. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter o for the amounts. Enter amounts in millions.) Debit Credit Date Account Titles and Explanation Dec. 31, 2021 Under IFRS, determine if there is any impairment and prepare any necessary entry on December 31, 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter o for the amounts. Enter amounts in millions.) Debit Credit Date Account Titles and Explanation Dec. 31, 2020 SHOW LIST OF ACCOUNTS On December 31, 2021, it is estimated that the cash-generating unit's fair value has increased to $413 million. Under IFRS, prepare the journal entry, if any, to record the increase in fair value. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter o for the amounts. Enter amounts in millions.) Debit Credit Date Account Titles and Explanation Dec. 31, 2021 SHOW LIST OF ACCOUNTS
