Hi Sir Ken!
Under 'acceptability' it says that the Roam Group Co. "carries small risk in acquiring Godiva Airport as the cost of the acquisition is relatively small and any operating losses could be easily absorbed".
If there was no specific mention of the acquisition cost in the case, how do we determine the acquisition cost and judge whether this cost is material to an acquiring organisation?
Hope to hear from you soon.
Best regards,
Kyle
Ask the Tutor ACCA SBL
December 2014 Question 1 (a)(ii)
9y ago#1$7m is mentioned just below Table 2.
The figures in Table 1 are in millions and the cost of $7 million is very small compared to those.
Oh yeah it's there. Thanks for pointing it out Sir Ken!
Best regards,
Kyle
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