WebHelper Incorporated 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: fair value of SCC, $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. Web-Helper prepares its financial statements according to IFRS and SCC is considered a cash-generating unit.
What amount of impairment loss, if any, should WebHelper report in its income statement?
