Question 2. Ralph Co aquires 80% of Angus Co on 1 January 20X7 for $780,000. At this date the net assets of Angus Co had a book value of $720,000 and a fair value of $750,000. The difference was due to land that was still held at 31 December 20X7. The NCI was measured as a proportion of net assets. Extracts from the statements of financial position of the two companies at 31 December 20X7 were as follows: Ralph $'000 Angus $'000 Property, plant and equipment 1,290 640 Investment 780 - Current assets 370 450 What is consolidated total assets? 2,960,000 2,930,000 2,780,000 2,742,000 Question 2. In accordance with IAS 37 Provisions, Contingent Liabilities and Contingent Assets, in which of the following circumstances should an expense for $450,000 be recognised? For damages in a lawsuit that the reporting company has a 75% chance of losing. The damages claim is for $600,000 For the expected cost to dismantle an oil platform as required by law. The cost is $700,000, which has a present value of $450,000. For the $450,000 cost to make good land contaminated as a result of past years' operations. A law requiring the clear up is virtually certain to be enacted. For the $450,000 cost of fitting fire safety equipment to comply with a law coming into effect in the next financial year. Internally generated goodwill for the business. This was not previously recognised by Delilah Co A licensed customer list. Delilah Co had not previously been able to recognise the list as an asset