prepare the entry if any to record the impairment of the loan on december 31 2014 by 645088

1. Briefly describe the impairment evaluation process and assessment of receivables on an individual or collective basis.

2. What are some steps taken by both the FASB and IASB to move to fair value measurement for financial instruments? In what ways have some of the approaches differed?

3. On December 31, 2012, Firth Company borrowed $62,092 from Paris Bank, signing a 5 year, $100,000 zero internet bearing note. The note was issued to yield 10% interest. Unfortunately, during 2012, Firth began to experience financial diffi culty. As a result, at December 31, 2012, Paris Bank determined that it was probable that it would collect only $75,000 at maturity. The market rate of interest on loans of this nature is now 11%.

Instructions

(a) Prepare the entry (if any) to record the impairment of the loan on December 31, 2014, by Paris Bank.

(b) Prepare the entry on March 31, 2015, if Paris learns that Firth will be able to repay the loan under the original terms.