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Winters Corporation purchased a division five years ago for $3 million. The division has been identified as a reporting unit that is cash-generating under IFRS.
Winters Corporation purchased a division five years ago for $3 million. The division has been identified as a reporting unit that is cash-generating under IFRS. Management is reviewing the division for impairment of goodwill and has estimated the fair value of the reporting unit to be $3.2 million and the unit's value in use to be $3.3 million. In addition, there would be $76,700 in direct costs should the company decide to sell. The carrying amounts of the division's net assets, including the associated goodwill of $1,385,000, are listed below: Instructions 1. Determine if the goodwill is impaired and provide the related journal entries under IFRS. (5 marks) 2. Determine if the goodwill is impaired and provide the related journal entries under ASPE
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