Question 1Ahmed Al Balushi SAOG is planning to acquire Abdullah SAOG at a Purchase consideration of OMR 350,000. Below is the Extract of the Statement of Financial Position as at 31st December 2019;Non – Current AssetsOMRIntangible Non - Current Asset Patent21,000Tangible Non- Current Asset Property, plant, and Equipment215,500Current Assets Inventories89,750Trade Receivable42,750Cash22,500Current Liabilities Trade Payable53,750Bank over draft12,000 Non – Current Liabilities 8% bank loan85,000 Based on the above information,A. You are required to calculate the value of goodwill for Abdullah SAOG as at 31st Dec 2019? In the year 2020, Ahmed Al Balushi has identified the implied goodwill is OMR 85,000.B. Calculate the value of good will to be impaired? C. Discuss the 2 types of Intangible assets with suitable examples?

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Answered: Question 1 Ahmed Al Balushi SAOG is…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter10: Property, Plant And Equipment: Acquisition And Subsequent Investments

Section: Chapter Questions

Problem 3P

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Question 1
Ahmed Al Balushi SAOG is planning to acquire Abdullah SAOG at a Purchase consideration of OMR 350,000. Below is the Extract of the Statement of Financial Position as at 31st December 2019;

Non – Current Assets	OMR
Intangible Non - Current Asset
Patent	21,000
Tangible Non- Current Asset
Property, plant, and Equipment	215,500
Current Assets
Inventories	89,750
Trade Receivable	42,750
Cash	22,500
Current Liabilities
Trade Payable	53,750
Bank over draft	12,000

Non – Current Liabilities
8% bank loan	85,000

Based on the above information,
A. You are required to calculate the value of goodwill for Abdullah SAOG as at 31st Dec 2019?
In the year 2020, Ahmed Al Balushi has identified the implied goodwill is OMR 85,000.
B. Calculate the value of good will to be impaired?
C. Discuss the 2 types of Intangible assets with suitable examples?

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