Determine the amount of impairment loss

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Question - Intangible Assets In 2014, SaulGroup acquired a brand with a fair value of $100,000. The brand is classified as an intangible asset with an indefinite life. At the end of 2016, the estimated selling price of the brand is $80,000 with zero selling cost. Expected future cash flows from continued used of the brand are $120,000, and the present value of the expected future cash flows is $70,000.

Required -

a. Determine the amount of impairment loss, if any, to be recognized in the year 2016 under (1) IFRS and (2) U.S. GAAP.

b. How would you explain the difference in income, total assets, and total stockholders?

Reference no: EM133182489

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