[kwansodan]

Thank you Chief

[kwansodan]

Hi Sir,

Please I’ve been contemplating this issue for quite some time now, but still nothing shows to me that the goodwill was computed on a proportionate basis.

Please sir, can you show to me why you believe the goodwill ($80m) was calculated using the proportionate basis?

[kwansodan]

I now get it! Thank you Jamesyeung, for supporting your explanation with a related example.

[kwansodan]

Dear Kerri,

Please your answer is not clear to me because of the following;

1. The question did not state that the impairment is related to goodwill

2. “Value in use is determined by the discount rates. and cannot be used in goodwill calculation”. Please what does this mean, and why is it so?

3. “the same projections have been used which shows that it definitely cannot be reversed.” Please what about the same projections being used shows that the impairment loss cannot be reversed?

[kwansodan]

Hello Sir,

Please I still don’t understand your answer to chandhini’s question about why ‘in the Pilot paper question (GNT Co), the cost of the bond has not been considered in computing GRY, but, in another question on the BPP kit (BPP’s own qn), the intial cost of the bond has also been considered in finding out the yield to maturity figure’.

Why was the cost of the bond omitted from GRY computation in the GNT Co question, but included in the yield to maturity computation in another question on the BPP kit (BPP’s own qn), since GRY = YTM?

Please, kindly explain further

Thanks in advance.

[kwansodan]

Your concise explanation has helped to straighten my understanding about Option Pricing. Thank you very much Sir.

[Author]

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