20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for December 2024 exams.
Get your discount code >>

Specimen Sep 2022 – AAA (Int’l) – Section B -Q.2

This topic has 3 replies, 2 voices, and was last updated 2 years ago by Kim Smith.

Viewing 4 posts - 1 through 4 (of 4 total)

Author
Posts
July 12, 2022 at 6:38 am #660321
nataliemcc
Participant
- Topics: 7
- Replies: 1
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
July 12, 2022 at 9:01 am #660326
Kim Smith
Keymaster
- Topics: 130
- Replies: 8108
I 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%.
July 12, 2022 at 9:40 am #660329
nataliemcc
Participant
- Topics: 7
- Replies: 1
How come to get $150m?
If it is true, it is 30% ($45m/$150m) should be used.
July 12, 2022 at 10:26 am #660333
Kim Smith
Keymaster
- Topics: 130
- Replies: 8108
The 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.
Author
Posts

Viewing 4 posts - 1 through 4 (of 4 total)

You must be logged in to reply to this topic.