[sonmezb]

Was question 4 about the new FA Impairment? or FI classification (i.e. amortised cost or Fair value with Cash Flow characteristics test and Business model test).

But then 4b was talking about the new FA impairment with expected credit losses.

I was very confused.
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In question 1- how did you calculate the impairment for the S subsidiary when the Net assets at the Y/E were not given?
I did NA at the acqn (75)+ plus goodwill (i think was 14)+ RE for the year (8)= 97 then less the recoverable value 92= 7

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I thought question 2b was disduised as leases but actually was about CGU imparment for Leases A & B.

[sonmezb]

Many Thanks. Much appreciated.

[sonmezb]

Hi,

Could you let me have the workings to the question 11 in the MCQ please;

LJM Co is considering investing in a new project which will cost $160,000.
It has an expected life of 4 years and an expected scrap value of $20,000.
The anticipated net operating cash flows each year are as follows:
Year 1: 40,000
Year 2: 60,000
Year 3: 80,000
Year 4: 20,000

The cost of capital is 10% p.a..

What is the Accounting Rate of Return (ARR) of the investment?

Thanks

[Author]

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