QUESTION EJOY – Kaplan exam kit – error?

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    marcin060482
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    hi

    please help:(

    1)
    basically there is a problem with impariment calculation. – for Zbay it’s calculated as grossed up goodwill 50+ Net assets at year end 612. (net) which is 662.9 (+50 goodwill) – 630 recoverable amount = 32.9 impairment and then 0.8 goes to I/S which is 26.32.

    2)
    BUT WHY calculation of impairment in Tbay is different?

    it’s net assets x 0.6 = 285 x 0.6 = 171 (but why they have multiplied this by 60%??? they haven’t done so in above ZBAY calculation ) and then goodwill of 6 is added which gives us 177. then 177-175 (FV less cost to sell) = 2 impairment.

    so the way the impariment is calculated is differently? why net assets at year end are multiplied by 60 % in case of 2) but why they are not multiplied by 80% in case 1)?

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