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Prepare the journal entry to record the impairment at dec

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AAA company wants to know if their building is impaired. On September 31, 2013 the building account had a balance of 900000 and the related accumulated depreciation account had a balance of 400000. (note: assume that the correct depreciation for 2017 had already recorded).

On December 31, 2017 the undiscounted cash flows from the building was 300000 and the fair value was 230000. The company intends to use this building in the future. If the company applies ASPE

1. Prepare the journal entry to record the impairment at December 31, 2013

2. Where should the gain or loss on the impairment be reported on the income statement?

3. At December 31", the building's fair value increased to 260000. Prepare the journal entry, if any in fair value

4. Assume instead that as at December 31, 2013, the building was expected to have undiscounted cash flows of 510000 and that it's fair value was estimated to be 45000. Prepare the journal entry to record the impairment at December 31 2013

5. If instead the company followed IFRS, what additional information would you require to test the building for impairment?

Reference no: EM132354271

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