Amsterdam Business School IFRS Course 2012 Impairment of Assets Exercise You are the advisor of a consumer electronics

s manufacturing company, called Electroman. Three years ago, the company completed a large acquisition in the Unites States where it acquired a developer and manufacturer of plasma and LCD TVs, called ValueTV Inc. Given the current financial crisis, the company wants to perform a robust impairment test on ValueTV Inc. The company has asked you to prepare a short memo in which you describe the following aspects: What are the crucial steps in the impairment test that we must take into account? How should we determine the value in use, what is the key information that we should take into account in the model for determining the value in use? How should we determine the fair value less cost to sell, what is the key information that we should take into account in the model for determining the fair value less cost to sell? In addition, the client has asked you to explain what an Excel spreadsheet template for the impairment test should look like. You do not have to focus on actual numbers, but must explain in the memo why you would include which data in the spreadsheet how you would determine the amounts that you would include in the cells of the spreadsheet.