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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
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%.
How come to get $150m?
If it is true, it is 30% ($45m/$150m) should be used.
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.