Under IFRS, determine if there is any impairment and prepare any necessary entry on December 31, 2023. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts. List debit entry before credit entry. ENTER AMOUNTS IN MILLIONS.) Date Dec. 31, 2023 Account Titles and Explanation Debit Credit
Under IFRS, determine if there is any impairment and prepare any necessary entry on December 31, 2023. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts. List debit entry before credit entry. ENTER AMOUNTS IN MILLIONS.) Date Dec. 31, 2023 Account Titles and Explanation Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Question
please answer the last part, thanks
Transcribed Image Text:On December 31, 2024, it is estimated that the reporting unit's fair value has increased to $422 million. Under ASPE, prepare the journal entry, if any, to record the
increase in fair value. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account
titles and enter O for the amounts. List debit entry before credit entry. ENTER AMOUNTS IN MILLIONS.)
(c)
Date
Dec. 31, 2024
Account Titles and Explanation
No Entry
eTextbook and Media
List of Accounts
Date
Dec. 31, 2023
No Entry
Debit
Account Titles and Explanation
0
Under IFRS, determine if there is any impairment and prepare any necessary entry on December 31, 2023. (Credit account titles are automatically indented when the amount
is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts. List debit entry before credit entry. ENTER AMOUNTS IN
MILLIONS.)
Debit
Credit
0
Credit
Attempts: 1 of 3 used
Transcribed Image Text:The following is net asset information for the Dhillon Division of Blue Spruce Inc.:
Cash
Accounts receivable
Property, plant, and equipment (net)
Goodwill
Less: Notes payable
Net assets
NET ASSETS
As at December 31, 2023
(in millions)
(a)
Your answer is correct.
Book Value
$51
Date
218
Dec. 31, 2023
2,645
213
(2,640)
$487
Loss on Impairment
The purpose of the Dhillon Division (also identified as a reporting unit or cash-generating unit) is to develop a nuclear-powered aircraft. If successful, travelling delays that are
associated with refuelling could be greatly reduced, and operational efficiency would increase significantly.
Fair Value
Excluding
Goodwill
To date, management has not had much success and is deciding whether a writedown of goodwill is appropriate at this time. Management has prepared the following estimates
for the reporting unit or cash-generating unit:
1. Undiscounted future net cash flows are appro ately $422 million.
2. Future value in use is approximately $482 million.
3. Sale of the unit would yield $357 million and selling costs would total $8 million.
$51
Account Titles and Explanation
218
2,821
(2,640)
Under ASPE, determine if there is any impairment and prepare any necessary entry on December 31, 2023. (Credit account titles are automatically indented when the amount
is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts. List debit entry before credit entry. ENTER AMOUNTS IN
MILLIONS.)
Accumulated Impairment Losses - Goodwill
Debit
130
Credit
130
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