PART B

1- Explain in details, the differences between the IFRS and GAAP (after FASB issued ASU 2017-04 to simplify the accounting for goodwill impairment) regarding the following:

- Assignment/allocation of goodwill. (i.e. The levels at which goodwill is assigned /allocated)

- Impairment of goodwill and test(s) applied and its steps (i.e. Methods of determining impairment of goodwill)

- How impairment loss is recognized and allocated.(i.e. impairment loss[charge] calculation and allocation)

Answer this question in a tabular format, like the following one:

IFRS GAAP

Assignment/allocation of goodwill Impairment of goodwill

How impairment loss is recognized and allocated

(You must support your answer in this question with quality and up to date references.) (15 Marks)

2- If the accountant did not prepare the elimination entry of unrealized profit in inventories at the end of any year, this will affect the consolidated net income in that year and in all subsequent years. Discuss this statement and support your answer with a numerical example. (5 Marks)

3- What is the difference between upstream sale of inventory and a downstream sale? Why is it important to know the direction of sale when preparing the consolidated financial statements?

(5 marks)

PART B 1- Explain in details, the differences between the IFRS and GAAP (after FASB issued ASU 2017-04 to simplify the accounting for goodwill impairment) regarding the following: - Assignment/allocation of goodwill. (.e. The levels at which goodwill is assigned allocated) Impairment of goodwill and test(s) applied and its steps (.e. Methods of determining impairment of goodwill) How impairment loss is recognized and allocated.(ie, impairment loss[charge) calculation and allocation) Answer this question in a tabular format, like the following one: IFRS GAAP Assignment/allocation of goodwill Impairment of goodwill How impairment loss is recognized and allocated (You must support your answer in this question with quality and up to date references.) (15 Marks)