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

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

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July 12, 2022 at 6:38 am #660321
nataliemcc
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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
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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
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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
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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.
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