WebHelper Inc. acquired 100% of the outstanding stock of Silicon Chips Corporation (SCC) for $46.1 million, of which $17.2 million was allocated to goodwill. At the end of the current fiscal year, an impairment test revealed the following: fair value of SCC, $42.2 million; fair value of SCC’s net assets (excluding goodwill), $32.1 million; book value of SCC’s net assets (including goodwill), $45.3 million.
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What amount of impairment loss should WebHelper recognize? (Enter your answer in millions. Round your answer to 1 decimal place.) |
Impairment Loss:
WebHelper Inc. acquired 100% of the outstanding stock of Silicon Chips Corporation (SCC) for $46.0 million, of which $17.0 million was allocated to goodwill. At the end of the current fiscal year, an impairment test revealed the following: SCC’s fair value of $42.0 million approximates fair value less costs to sell and that the present value of SCC’s estimated future cash flows is $42.1 million; book value of SCC’s net assets (including goodwill), $45.0 million. WebHelper prepares its financial statements according to IFRS and SCC is considered a cash generating unit.
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What amount of impairment loss, if any, should WebHelper recognize? (Enter your answer in millions. Round your answer to 1 decimal place.)
Impairment Loss: |