Kentfield Corporation has $260 million of goodwill on its book from the 2010 acquisition of Seaford Shipping. At the end of its 2013 fiscal year, management has provided the following information for a required goodwill impairment test ($ in millions): Required:
Assuming that Seaford is considered a reporting unit for U.S. GAAP and a cash-generating unit for IFRS, determine the amount of goodwill impairment loss that Kentfield should recognize according to U.S. GAAP and International Financial Reporting Standards.

Question

Kentfield Corporation has $260 million of goodwill on its book from the 2010 acquisition of Seaford Shipping. At the end of its 2013 fiscal year, management has provided the following information for a required goodwill impairment test ($ in millions):  Required:
Assuming that Seaford is considered a reporting unit for U.S. GAAP and a cash-generating unit for IFRS, determine the amount of goodwill impairment loss that Kentfield should recognize according to U.S. GAAP and International Financial Reporting Standards.

Quizplus · Accepted Answer

The Answer of Kentfield Corporation has $260 million of goodwill on its book from the 2010 acquisition of Seaford Shipping. At the end of its 2013 fiscal year, management has provided the following information for a required goodwill impairment test ($ in millions):  Required:
Assuming that Seaford is considered a reporting unit for U.S. GAAP and a cash-generating unit for IFRS, determine the amount of goodwill impairment loss that Kentfield should recognize according to U.S. GAAP and International Financial Reporting Standards.

Kentfield Corporation Has $260 Million of Goodwill on Its Book