Question
1 H Ltd acquired all the identifiable assets and liabilities of F Ltd at fair value. As part of consideration, H Ltd is to provide
1 H Ltd acquired all the identifiable assets and liabilities of F Ltd at fair value. As part of consideration, H Ltd is to provide sufficient cash to allow F Ltd to repay $8500 outstanding debts and liquidation expenses of $800. H Ltd will also pay 25 000 ordinary shares in H Ltd at $1.5 each. Cost of issuing these shares is $550. The purchase consideration paid by H Ltd is:
| a. | $46,800 | |
| b. | $47,350 | |
| c. | $46,000 | |
| d. | $46,550
|
2
Which of the following statements is not true?
| a. | An impairment loss recognised for Goodwill shall not be reversed in a subsequent period. | |
| b. | A cash generating unit is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other group of assets. | |
| c. | An impairment loss shall be recognised immediately in profit or loss, unless the asset is carried at revalued amount. | |
| d. | The recoverable amount of an asset or a cash generating unit is the lower of:
|
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