Visdant Company Provided the Following Information The Qualitative Assessment of Goodwill Is Completed and It Is

question 36

Essay

Visdant Company provided the following information:
$$\begin{array} { | l | r | } \hline \text { Fair value of Visdant, including goodwill } & \$ 2,100,000 \\\hline \text { Value in use of Visdant, } & \$ 2,000,000 \\\hline \text { Book value of Visdant net assets, excluding goodwill } & \$ 3,000,000 \\\hline \text { Add: Carrying value of goodwill } & \$ 600,000 \\\hline \text { Carrying value of Visdant, including goodwill } & \$ 2,400,000 \\\hline\end{array}$$
The qualitative assessment of goodwill is completed and it is more likely than not that goodwill is impaired. Describe the process for determining if Visdant needs to record a goodwill impairment loss and prepare any required journal entries. Visdant follows IFRS.

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Definitions:

Inflows of Money

The movement of cash or cash equivalents into a place, organization, or financial instrument.

Positive Entry

The introduction of new firms into a market, increasing competition and potentially leading to innovation and lower prices for consumers.

Current Account Entry

An item in the balance of payments that includes all imports and exports of goods and services, along with income received from or paid to foreign countries.

Current Account

A component of a country's balance of payments that encompasses the trade balance, net primary income, and secondary income.