2.99 See Answer

Question: Mikkeli OY acquired a brand name with

Mikkeli OY acquired a brand name with an indefinite life in 2021 for 40,000 markkas. At December 31, 2020, the brand name could be sold for 35,000 markkas, with zero costs to sell. Expected cash flows from the continued use of the brand are 42,000 markkas, and the present value of this amount is 34,000 markkas.
a. Determine the appropriate accounting for this brand name for the year ending December 31, 2020, under (1) IFRS and (2) U.S. GAAP.
b. Prepare the entry(ies) that the U.S. parent would make on the December 31, 2020, conversion worksheet to convert IFRS balances to U.S. GAAP.


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