Under PFRS for SME's, goodwill arising from business combination   Charged to retained earnings after the acquisition is completed Never amortized but tested for impairment at least annually To be amortized over useful life or if useful life cannot be determined, over 10 years Amortized over 40 years or its useful life, whichever is shorter

Q: On January 1, 2010, P Company acquired the net assets of S Company for $1,580,000 cash. The fair…

A: Intangible assets:   It is an asset that we cannot see, touch. These assets do not have physical…

Q: Which of the following statements is true regarding goodwill?

A: Goodwill: Goodwill is an intangible asset . This enables the firm to earn more than the other…

Q: Abba Company accounted for noncurrent assets using the revaluation model.On July 1, 2021, the entity…

A: As per IFRS 5 Assets held for sale shall be valued at lower of carrying value or fair market value…

Q: 1. On January 1, 20X7, Sword reported net assets with a book value of $132,000. A total of $21,000…

A: Consolidation Statement In the consolidation statement the parent company acquired the subsidiary…

Q: On December 1, 2021, Violet Company committed to a plan to dispose of the assets of a business…

A: All the activities occurring prior to the discontinuation of operations shall be included for…

Q: On October 28, 2021, a company committed to a plan to sell a division that qualified as a component…

A: The impairment loss is recognized only when the fair value of assets is less than the book value of…

Q: Goodwill arising from business combination is * O O At the discretion of management, either tested…

A: Goodwill is an intangible asset. It is the excess of the purchase price paid for an acquired entity…

Q: An entity purchased an equipment for P5,000,000 on January 1, 2020. The equipment had a useful life…

A: Cost of Disposal:-It is the selling value of the equipment after subtracting depreciation from the…

Q: An entity purchased an equipment for P5,000,000 on January 1, 2020. The equipment had a useful life…

A: Calculation of Depreciation per year on the equipment: Annual Depreciation Expense=(cost of the…

Q: Situation 1 On January 1, 2020, another entity purchased equipment costing P4,800,000 with a 6-year…

A: Deferred Income Approach It is the method where income is spread over the period in which related…

Q: Several years ago, Blaha Company purchased Husker Company as a subsidiary. At that time, Blaha…

A: Impairment of  goodwill  When the carrying value of goodwill on financial statements exceeds its…

Q: Parent Company acquires Subsidiary Company on September 1, 2020. Parent seeks an independent…

A: The correct answer for the above mentioned question is given in the following steps for your…

Q: ome of $600,000 and declared and paid dividends of $200,000. Fiscal Year 2020 depreciation and…

A: Given information: Stake owned by X = 80% Net income = $600,000 Dividends = $200,000 Identifiable…

Q: On January 1, 2019, an entity purchased equipment for P4,800,000. The equipmen s expected to have a…

A: The revaluation surplus is calculated as excess of revalued value of assets as compared to book…

Q: An entity purchased an equipment for P5,000,000 on January 1, 2020. The equipment had a useful life…

A: On 01.01.2020, An entity purchased an equipment = P5000000 Useful life = 5 years Residual value =…

Q: Goodwill arising from business combination is     Charged to retained earnings after the acquisition…

A: Last option i.e. Never amortized, is the correct answer.

Q: On 1/1/2019 Company A acquired the net assets of Company B for a price of 400000 JD the fair value…

A:

Q: On January 1, 2021 Major acquired 60% of Minor for a cash payment of $600,000.  At date of…

A: Formula: Goodwill = Purchase price - Fair value of Net Assets

Q: WOODBRICKS CORP. decided on September 1, 2021 to dispose of a component of business.  The component…

A: As per IFRS 5, Non-current assets held for sale and discontinued operations, Discontinued operation…

Q: On September 1, 2019, Plant Co. acquired 75% interest in Zombie Co. On this date, Zombie's net…

A: The consolidated profit refers to the total profit generated by a company as a whole group that…

Q: 3ybel business fair value in excess of its corresponding book value was assigned to trademarks. This…

A:

Q: On September 1, 2019, Plant Co. acquired 75% interest in Zombie Co. On this date, Zombie's net…

A: Consolidated profit and loss a/c represents Profit and Loss of Consolidated entity as single entity…

Q: On April 30, 2020, Sa Young Nam Company approved a plan to dispose of a segment of its business. At…

A: Answer: The amount that is reported to profit and loss account for 2020 is the portion of profit and…

Q: The IASB standard (IFRS 3 Business Combinations) issued with respect to the treatment of negative…

A: Negative goodwill in business combination is known as bargain purchase.It should be recognised…

Q: On October 28, 2021, a company committed to a plan to sell a division that qualified as a component…

A: An income statement is one that is prepared to determine the net income and loss that the company…

Q: dditional Information: a) On the date of acquisition, an item of equipment of Man United. Ltd with a…

A: The consolidation statement denotes the combined financial information of parent and subsidiary…

Q: On October 1, 2007, JIMMY Acquired the net assets of NEUTRON which resulted to goodwill. When JIMMY…

A: IFRS 3           It stands for International Financial Reporting Standard 3 which states the…

Q: valuation of an acquired trademark was incomplete. PHINEAS used $1,000,000 as provisional fair value…

A: IFRS 3           It stands for International Financial Reporting Standard 3 which states the…

Q: Tamara Corporation acquired XW Products on January 1, 2020 for $6,400,000, and recorded goodwill of…

A: Impairment of goodwill is defined as the accounting charge which business report when the carrying…

Q: On October 1, 2021, ABC acquired the net assets of DEF which resulted to goodwill. When ABC issued…

A: Goodwill can be defined as an intangible asset which arises when one company acquires another…

Q: ABC Co.’s biological asset has a fair value less costs to sell of P 100,000 and P120,000,…

A: Asset refers to any economic value resource for an individual, corporation or a country. It…

Q: Xtra Company purchased a business from Argus for $96,000 above the fair value of its net assets…

A: Goodwill is classified as an intangible asset on the balance sheet. Under US GAAP and IFRS, goodwill…

Q: Affable Company purchased an equipment for P5,000,000 on January 1, 2020. The equipment had a useful…

A: Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for you. If…

Q: Good will arising from business combination is:    a. charged to Retained Earnings after the…

A: Goodwill refers to amount paid by acquired company in excess of the net assets of the transferring…

Q: On September 1, 2019, Plant Co. acquired 75% interest in Zombie Co. On this date, Zombie's net…

A: The consolidated gross profit refers to the total gross profit realized by the entity as a group. It…

Q: Robinson Company purchased Franklin Company at a price of $2,500,000. The fair market value of…

A: Goodwill: It can be defined as an intangible asset that is measured when an existing company is…

Q: ABC Company accounted for noncurrent assets using the cost model. On December 31, 2021, the entity…

A: As per IFRS 5, an asset held for sale is not depreciation rather it should be valued at fair value…

Q: Parent Company acquires Subsidiary Company on September 30, 2020.   Parent seeks an independent…

A: Provisional fair value of asset as in December 31,2020 =  P300000 As per valuer, Fair value on the…

Q: 24. Badreah Company acquired 90% of Rose Company several years ago for which the consideration…

A: Based on the given information, Particulars Amount Recorded goodwill $200,000 Less: Impaired…

Q: Carla Vista Corporation acquired End-of-the-World Products on January 1, 2020 for $6150000, and…

A: Given information Recorded goodwill = $1,150,000 fair value = $4,482,000 Carrying value =…

Q: On September 1, 2019, Plant Co. acquired 75% interest in Zombie Co. On this date, Zombie's net…

A: Consolidation shows the acquisition of one company by another.

Q: On January 1, 2010, P Company acquired the net assets of S Company for $1,580,000 cash. The fair…

A: During the year 2011 Fair Value of S Co. Identifiable Net Assets (A) = $ 1,190,000 Carrying Amount…

Q: A company purchased equipment for P5,000,000 on January 1, 20X8. The equipment had a useful life of…

A: The investments made by a company, whether a fixed asset investment or a debt investment or an…

Q: On December 31, an entity had a reporting unit that had a book value of $3,450,000, including…

A: Under the new standard, goodwill needs to be impaired if the reporting unit's carrying value is more…

Q: ompany which prepares financial statements to 31 December classifies a non-current asset as held for…

A: The amount by which the carrying value of an asset or a cash-generating unit exceeds its recoverable…