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Supplementary objective test questions
The following data relates to the next 3 questions
Extracts from the LIV Group statement of financial position as at 31st December
20X5 are given below:
20X5 20X4
$ $
Intangible assets 420,000 340,000
Inventory 275,000 237,500
Trade receivable 471,500 400,000
Trade payables 310,000 265,000
Extracts from the LIV Group statement of profit or loss for the year ended
31st December 20X5 are given below:
$
Profit before tax 387,500
During the year LIV acquired an 80% shareholding in ERP for $350,000.
The fair values of the net assets of ERP at the acquisition date are as follows:
20X5
$
PPE 100,000
Inventory 40,000
Trade receivable 55,000
Cash 10,000
Trade payables (35,000)
–––––––
170,000
LIV value NCI’s using the proportionate method. Intangible assets consist of goodwill
only.
17.3 What is the impairment arising from goodwill shown within the
reconciliation from profit before tax to cash generated from operations?
A $100,000
B $134,000
C $260,000
D $294,000
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