[littlestar412]

Now I understand it. Thank you!

[littlestar412]

Ok, I had misplaced 31.12.2015 date. Now in their new order, it should be accounted for bonus issue but there is no amount to help us calculate the number of shares there were before $10m addition (not proportional to previous number of shares)

01.03.2015->31.07.2015 + 2:5 bonus issue
01.08.2015->31.12.2015 + $10m
31.12.2015->31.12.2015 + $52 -> not of interest because issued at end of year

[littlestar412]

Yes. Thank you!

[littlestar412]

Yes, not it si definitely better! Thank you.

[littlestar412]

If I understood correctly,

in q2:
remaining engine value: 120,000-60,000(motor lost)-10,000(impairment loss)=50,000
goodwill: 70,000-60,000(motor lost)-10,000(impairment loss)

However, I cannot understand why “the second engine CV is subject to impairment on a pro-rata basis”? I ask because I am finding it difficult to fully understand ‘Impairment of Assets’ subject.

in q3:
After recalculating, I got: CV: $88,300, NSP: $88,700 and VIU: $85,251
Recoverable Amount is: NSP.
Since NSP>CV, then there is no Impairment Loss.

Did I understand correctly?

[littlestar412]

Yes, thank you!

[littlestar412]

It would be very useful your help for me to solve these questions!

[littlestar412]

I am reading and reading the notes but I am not able to solve those two problems.

For Q2 I reasoned that the value of remaining engine is $60,000 (120,000/2) and I do not know from where to get to the goodwill.

For Q3 I got as CV: $87,300, NSP: $88,700 and VIU: $81,445, so amount of asset is the one of CV. How do I get to the impairment loss with the available data, please?

Thank you in advance for your patience.

[Author]

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