Question
WebHelper Inc. acquired 100% of the outstanding stock of Silicon Chips Corp. (SCC) for $45.7 million, of which $16.4 million was allocated to goodwill. At
WebHelper Inc. acquired 100% of the outstanding stock of Silicon Chips Corp. (SCC) for $45.7 million, of which $16.4 million was allocated to goodwill. At the end of the current fiscal year, an impairment test revealed the following: SCC's fair value of $41.4 million approximates fair value less costs to sell and that the present value of SCC's estimated future cash flows is $41.7 million; book value of SCC's net assets (including goodwill), $44.1 million.
If WebHelper prepares its financial statements according to IFRS and SCC is considered a cash generating unit, what amount of impairment loss, if any, should WebHelper recognize?
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