For the answer of part a, how the materiality of assets of the division of 27.3% of the company’s total assets to be calculated?
Thank for answer
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Specimen Sep 2022 - AAA (Int’l) - Section B -Q.2
4y ago#1I presume you mean Q3 Myron.
The only possible figure in the scenario on which to consider assets is the value in use $45m - which is the carrying amount of the division included in the company's $150m total assets - so 27.3%.
How come to get $150m?
If it is true, it is 30% ($45m/$150m) should be used.
4y ago#3The 1st para starts "It is 1 July 20X5...."
In the 2nd para starting "The draft financial statement ..." it says "and total assets of $150 million".
Then my typo - sorry - the carrying amount is now $41 million (Exhibit 1) - $45 was the previous carrying amount.
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