Collison and Ryder Company (C\&R) has been experiencing declining market conditions for its...
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Collison and Ryder Company (C\&R) has been experiencing declining market conditions for its sportswear division. Management decided to test the assets of the division for possible impairment. The test revealed the following: book value of division's assets, $26.5 million; fair value of division's assets, \$21 million. Assume that the present value of the estimated future cash flows generated from the division's assets is $22 million and that their fair value approximates fair value less costs to sell. What amount of impairment loss should C\&R report if the company prepares its financial statements according to IFRS? Note: Enter your answer in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5)
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Collison and Ryder Company (C\&R) has been experiencing declining market conditions for its sportswear division. Management decided to test the assets of the division for possible impairment. The test revealed the following: book value of division's assets, $26.5 million; fair value of division's assets, \$21 million. Assume that the present value of the estimated future cash flows generated from the division's assets is $22 million and that their fair value approximates fair value less costs to sell. What amount of impairment loss should C\&R report if the company prepares its financial statements according to IFRS? Note: Enter your answer in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5) 