A Ltd acquires all the net assets of B Ltd and applies the requirements of AASB 3 Business Combinations Details regarding the net assets of B Ltd are as follows Carrying amount Fair value $ $ Assets Cash 50,000 50,000 Furniture 20,000 15,000 Fittings 40,000 20,000 Accounts receivable 25,000 20,000 Goodwill 10,000 10,000 Liabilities Accounts payable 20,000 20,000 Assume A Ltd issues 100,000 shares at $1 50 each to acquire the net assets of B Ltd The acquisition analysis would disclose the fair value of the identifiable net assets of B Ltd and the consideration transferred as Fair value of identifiable net assets $95,000 Consideration transferred $150,000 Fair value of identifiable net assets $85,000 Consideration transferred $100,000 Fair value of identifiable net assets $85,000 Consideration transferred $150,000 Fair value of identifiable net assets $125,000 Consideration transferred $100,000 QUESTION 21 In the ABC Learning case study, the reasons attributed to the companys failure included the valuation of intangible assets and goodwill, based on several business combinations Explain what the possible implications or problems of including intangible assets in an acquisition analysis might be Consider the effect of intangible assets on the calculation of goodwill, and the implications for investors and other stakeholders QUESTION 20 $ A Ltd acquires all the net assets of B Ltd and applies the requirements of AASB 3 Business Combinations Details regarding the net assets of B Ltd are as follows Carrying amount Fair value $ Assets Cash 50,000 50,000 Furniture 20,000 15,000 Fittings 40,000 20,000 Accounts receivable 25,000 20,000 Goodwill 10,000 10,000 Liabilities Accounts payable 20,000 20,000 Assume A Ltd issues 100,000 shares at $1 50 each to acquire the net assets of B Ltd The acquisition analysis would disclose the fair value of the identifiable net assets of B Ltd and the consideration transferred as Fair value of identifiable net assets $95,000 Consideration transferred $150,000 Fair value of identifiable net assets $85,000 Consideration transferred $100,000 Fair value of identifiable net assets $85,000 Consideration transferred $150,000 Fair value of identifiable net assets $125,000 Consideration transferred $100,000 QUESTION 21 In the ABC Learning case study, the reasons attributed to the company's failure included the valuation of intangible assets and goodwill, based on several business combinations Explain what the possible implications or problems of including intangible assets in an acquisition analysis might be Consider the effect of intangible assets on the calculation of goodwill, and the implications for investors and other stakeholders TT T Arial 3 (12pt)

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A Ltd acquires all the net assets of B Ltd and applies the requirements of AASB 3 Business Combinations. Details regarding the net assets of

A Ltd acquires all the net assets of B Ltd and applies the requirements of AASB 3 Business Combinations. Details regarding the net assets of B Ltd are as follows:

	Carrying amount	Fair value
	$	$
Assets
Cash	50,000	50,000
Furniture	20,000	15,000
Fittings	40,000	20,000
Accounts receivable	25,000	20,000
Goodwill	10,000	10,000

Liabilities
Accounts payable	20,000	20,000

Assume A Ltd issues 100,000 shares at $1.50 each to acquire the net assets of B Ltd. The acquisition analysis would disclose the fair value of the identifiable net assets of B Ltd and the consideration transferred as:

		Fair value of identifiable net assets $95,000 Consideration transferred $150,000
		Fair value of identifiable net assets $85,000 Consideration transferred $100,000
		Fair value of identifiable net assets $85,000 Consideration transferred $150,000
		Fair value of identifiable net assets $125,000 Consideration transferred $100,000

QUESTION 21

In the ABC Learning case study, the reasons attributed to the companys failure included the valuation of intangible assets and goodwill, based on several business combinations.

Explain what the possible implications or problems of including intangible assets in an acquisition analysis might be. Consider the effect of intangible assets on the calculation of goodwill, and the implications for investors and other stakeholders.

QUESTION 20 $ A Ltd acquires all the net assets of B Ltd and applies the requirements of AASB 3 Business Combinations. Details regarding the net assets of B Ltd are as follows: Carrying amount Fair value $ Assets Cash 50,000 50,000 Furniture 20,000 15,000 Fittings 40,000 20,000 Accounts receivable 25,000 20,000 Goodwill 10,000 10,000 Liabilities Accounts payable 20,000 20,000 Assume A Ltd issues 100,000 shares at $1.50 each to acquire the net assets of B Ltd. The acquisition analysis would disclose the fair value of the identifiable net assets of B Ltd and the consideration transferred as: Fair value of identifiable net assets $95,000 Consideration transferred $150,000 Fair value of identifiable net assets $85,000 Consideration transferred $100,000 Fair value of identifiable net assets $85,000 Consideration transferred $150,000 Fair value of identifiable net assets $125,000 Consideration transferred $100,000 QUESTION 21 In the ABC Learning case study, the reasons attributed to the company's failure included the valuation of intangible assets and goodwill, based on several business combinations. Explain what the possible implications or problems of including intangible assets in an acquisition analysis might be. Consider the effect of intangible assets on the calculation of goodwill, and the implications for investors and other stakeholders. TT T Arial 3 (12pt)