1: Mr. Harry has acquired 35% shares of K Ltd for $8 million. He has also calculated

the goodwill using the fair value method. Moreover, he has to report both basic and diluted EPS

in the reports.

2: Karim Ltd purchased equipment and recorded it at the cost price. After using the

equipment for 3 years he has realized that the book value is above the recoverable amount hence

a revaluation of the asset is required.

3: Miss Sally has three business segments in three different states in America. She must

comply the standards and report the financials of all the segments. Moreover, she builds

transformers for customers so revenues are recognized only when the project is fully completed.