At the end of its reporting year december 31 2010 acme inc, Ask an Expert

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At the end of its reporting year (December 31, 2010), Acme Inc. shows the following intangible assets on its books: $60,000 patent with estimated remaining useful life of 10 years, and $92,000 goodwill with an indefinite life. Before closing its books, the company evaluates its intangible assets and identifies a $20,000 impairment in the patent and a $32,000 impairment in goodwill. These amounts are the same for US GAAP and IFRS purposes. For IFRS, Acme Inc. does not revalue its intangible assets

a. How will the impairment loss be recorded using US GAAP and for IFRS?

b. Assume that at the end of 2011, Acme Inc. determines the company has recovered $12,000 of the patent impairment and $16,000 of the goodwill impairment. How will this be recorded using US GAAP and IFRS?

c. Assume instead that at the end of 2011, Acme Inc. determines the company has recovered $18,000 of the patent impairment. How will this be recorded using US GAAP and IFRS?

d. Assume instead that at the end of 2011, Acme Inc. determines the company has recovered $24,000 of the patent impairment. How will this be recorded using US GAAP and IFRS?

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Financial Accounting, Accounting

Category:- Financial Accounting
Reference No.:- M92050862

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