- This topic has 1 reply, 2 voices, and was last updated 3 years ago by .
Viewing 2 posts - 1 through 2 (of 2 total)
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.
OpenTuition recommends the new interactive BPP books for June 2024 exams, Get your discount code >>
Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Estoil que 35 bpp, past paper 12/14
In (a) part
Please explain the allocation of goodwill to CGU explanation given in book
In b(2) part they have written that capital expenditure is taken into account in cash flow but we don’t include capital expenditures
(a) If business cannot allocate goodwill to individual CGUs it has to do a 2 stage impairment calculation. I think the author is saying that the standard has inadequate guidance on this calculation.
(b) The client should take into account CAPEX TO MAINTAIN THE CURRENT ASSETS IN CURRENT CONDITION. They haven’t. And the BPP answer is saying that they should have.
Mercifully, since the syllabus change, we don’t tend to see the abstruse discussions in part (a)!