What will the deferred consideration liability be at 31 December 20202 4. On 30 June 2019 Sugar acquired 800 000 of Salts 1 million shares Sugar issued 3 shares for every 4 shares acquired in Salt. On 30 June 2019 the market price of a Sugar share was NS 3.80 and the market price of a Salt share was NS3. Sugar agreed to pay NS 550 000 in cash to the existing shareholders on 30 June 2020. Sugar's borrowing rate was 10% per annum. Sugar paid professional fees of NS 100 000 for advise on the acquisition Required What is the cost of investment that will be used to calculate goodwill in the consolidated statement of financial position for Sugar? 5. Which TWO of the following situations are unlikely to represent control over an investee? Owing 55% and being able to elect 4 of the 7 directors . Owing 51% but the constitution requires that decisions need the unanimous consent of shareholders Having currently exercisable options which would take the shareholding in the investee to 55% d. Owing 40% of the shares but having majority of voting rights within the investee Owning 35% of the ordinary shares and 80% of the preference shares of the investee 6. On 1 January 2019, Honda purchased 75% of Toyota's 80 million shares. At this date, Toyota's retained earnings were NS 60 million. The consideration paid for Toyota was 2 Honda shares for every 3 Toyota purchased plus a cash payment of NSI per purchased share. At the date of acquisition, the value of the Honda share was NS2.50 Required What is the consideration paid by Honda on 1 January 2019. 7. Which of the following definitions is not included within the definition of control per IFRS 10 Consolidated Financial statements? Ca Having power over the investee b. Having exposure or rights to variable returns from its investment with the investee . Having the majority of shares in the investee cd. Having the ability to use its power over the investee to affect the amount of the investor's returns. Ce. All of the above