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1. The factory site would have a market value of $24 million, $1 million of costs are estimated to
be required to demolish the factory and to obtain planning permission for the conversion, so fair value of factory site will be 24-1 = 23 ml2. Net asset at acquisition date will be : 65 +23 =88 ml
3. Goodwill at acquisition date will be : 90 (Condiseration) + 22 ( NCI) -88 = 24 ml
4. Total value of CGU = 106 + 24 = 130 ml
5. Impairment amount = 130-100 = 30 ml
6 . Allocation impairment amount :
Goodwill : 24
Factory site : 4
Intangible asset : 0.75
PPE: 1.251) NCI at acquisition date ( when control achieved ) x
2) NCI share of post acquisition reserve to date of disposal x
3) NCI at disposal date =A
4) Increase in NCI on date of disposal = (A/20) x 10
If all segments satisfying 10% criteria have been disclosed & do not amount to
75% of total external revenue => additional operating segments should be
disclosed until 75% level is metMaterial errors are corrected retrospectively, the same as for a change in accounting policy
Debit impairment loss ( P/L) and Credit OCI : 0,4 ml
value of debt instrument is not affected
Bond interest is paid annually as 31 Dec, we are calculating CV at 1 July , it means we have not paid interest yet.
Table 1 already included all miscellaneous transactions and Set up SPE entry , now we need to adjust to exclude the entry we have recorded . Last time we record : Debit Equity / Credit asset , so now we have to revert : debit asset/ creidt equity : 30
