INTANGIBLES (IAS 28) & IMPAIRMENT OF ASSETS (IAS 36)

PROBLEM

Amalawyer Company engaged your services to compute the goodwill and purchase price for the acquisition of Amalayer Company. The following data are available for the Amalayer Company:

Current Assets P 6,000,000 Current Liabilities P 3,500,000 Investments 2,500,000 Noncurrent liabilities 2,500,000 PPE 13,000,000 Ordinary shares 7,000,000 Share premium 1,500,000 Accumulated profits 7,000,000 Total Assets P 21,500,000 Total Liab and SHE P 21,500,000