Complete the following assignment. Submit your responses in MSWord as one document. Label each section clearly. If you choose to use an Excel spreadsheet for question 2, please copy and paste your spreadsheet into your Word document. For written answers, please make sure your responses are well written, conform to APA formatting, and have proper citations, if needed.
1. How is an impairment loss on property, plant and equipment determined and measured under IFRS? How does this differ from US GAAP?
2. Please determine the amount at which the inventory should be reported on December 31 Year 1 balance sheet using the following information:
Historical cost $20,000
Replacement cost $14,000
Estimated selling price $17,000
Estimated costs to complete and sell $2,000
Normal profit margin as a percentage of selling price 20%
The entire inventory on hand at December 31, Year 1 was completed in Year 2 at a cost of $1,800 and sold at a price of $17,150.
3. Determine the impact on income in Year 1 and Year 2 under (1) IFRS and (2) US GAAP.