- 5 Shapes Icons 3D Models Add-ins. Media Links Comment Header Footer QUESTION 1 The following relate to the financial information of Albert plc, Audrey Limited a Ahmed Limited. On 1 October 2019 Albert plc also purchased 12,000,000 equ shares in Audrey Limited for 25,000,000. The acquisition was through a sha exchange plus a cash deposit of 5,000,000. The payment of the total consideratio of 25,000,000 was agreed between the two parties Albert plc and Audrey Lt There was no outstanding purchase consideration as at 30 September 2021 as f as this transaction was concerned. The decision to acquire this investment wa taken at an extraordinary general meeting held on 1st August 2021 and th shareholders who could not attend this august meeting voted by proxy. At the date acquisition of Audrey Ltd, the retained earnings were 4,500,000. On 1 October 2019, Albert plc acquired 2,400,000 shares in Ahmed limited fo 5,000,000. The retained earnings of Ahmed limited on the date of acquisition wer 4,000,000. The immediate payments have been recorded in the financia statements of Albert plc and there was no outstanding purchase consideration as a 30 September 2021. The following information is relevant: (i) At the date of acquisition, the fair value of Audrey Ltd's freehold property were equal to their carrying amounts with the exception of Audrey Ltd's land which had a fair value of 1,000,000 below its carrying amount but was adjusted in the accounts shortly after acquisition and has not changed in value since then. A fair value examination was carried out for Audrey Ltd on other non- current assets at the date of acquisition with the following results: Equipment Plant Book values '000 5,000 6,000 Fair values '000 9,000 7,000 ords (ii) NEK The above fair values have not been included in the financial statements of Audrey Ltd. It is the policy of Audrey Ltd to depreciate plant and Equipment at at rate of 10% on a straight line basis. An impairment test on 30 September 2021 showed that the goodwill in Audrey Ltd is impaired and should be written down by 1,000,000. An impairment English (United States)