237 Paper F7 Mini Exercises – Answers September/December 2016 Answer 2 (a) 420,000 Cost of investment Nci investment valuation 340,000 NA @ doa Shares 300,000 Ret ears 400,000 700,000 Goodwill 60,000 Impairment 60% 36,000 24,000 16,200) (Nci share of impairment 45% x 36,000 (b) Cost of investment 420,000 Nci investment valuation 324,000 NA @ doa as above 700,000 44,000 Goodwill Impairment 60% 17,600 11,880) (Nci share of impairment 45% x 26,400 (c) 420,000 Cost of investment NA @ doa as above 700,000 H's share 55% 385,000 35,000 Nci goodwill (given) 45,000 Goodwill Impairment 60% 18,000 12,150) (Nci share of impairment 45% x 27,000 (d) 420,000 Cost of investment Nci investment valuation 45% x 700,000 315,000 735,000 NA @ doa as above 700,000 Goodwill 35,000 Impairment 60% 14,000
Paper F7 Mini Exercises – Answers September/December 2016 Answer 2 237 (a) Cost of investment 420,000 Nci investment valuation 340,000 NA @ doa Shares 300,000 Ret ears 400,000 700,000 Goodwill 60,000 Impairment 60% 36,000 24,000 (Nci share of impairment 45% x 36,000 16,200) (b) Cost of investment 420,000 Nci investment valuation 324,000 NA @ doa as above 700,000 Goodwill 44,000 Impairment 60% 17,600 (Nci share of impairment 45% x 26,400 11,880) (c) Cost of investment 420,000 NA @ doa as above 700,000 H's share 55% 385,000 35,000 Nci goodwill (given) Goodwill 45,000 Impairment 60% 18,000 (Nci share of impairment 45% x 27,000 12,150) (d) Cost of investment 420,000 Nci investment valuation 45% x 700,000 315,000 735,000 NA @ doa as above 700,000 Goodwill 35,000 Impairment 60% 14,000
ACCA_F7_S16_Notes.docx