Page 557 - F2 Integrated Workbook STUDENT 2019

Answers to supplementary objective test questions

14.3 $8.9m

Scall Group’s gain or loss on disposal of Lid.

$m
Proceeds on disposal 35
FV of remaining 30% investment 15
less
All S’s net assets at disposal (40)

Goodwill at disposal (W1) (3.5)
plus
NCI at disposal (10%) 2.4
––––––

Gain on disposal 8.9

(W1) Goodwill at disposal

$m
Cost of investment 42

NCI @ Acquisition (10%) 2.5
All S’s NA’s @ acquisition

Share capital 10
Retained earnings 26
Fair value adjustment 5

(41)
–––––

3.5

549