At the end of its reporting year 31st december 2010 acme

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Reference no: EM13352149

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

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

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

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

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

Reference no: EM13352149

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