KHR Ltd acquired a business consisting of 3 cash-generating units: HNE, DGH and ATR. There is no reasonable way of allocating the resulting goodwill to them. After a number of years, the carrying amount and the recoverable amount of the net assets of the CGUs, togetherwith the purchased goodwill (calculated using the full goodwill method), are as follows: HNE ATR Carrying Amount Recoverable Amount Frw 1,440,000 1,800,000 DGH Frw 2,160,000 1,700,000 Required: 1. Produce the revised values of Cash Generating Units here above 2. Make proper journal entries Frw 2,520,000 2,160,000 Goodwill Frw 900,000 Total Frw 7,020,000 5,660,000

KHR Ltd acquired a business consisting of 3 cash-generating units: HNE, DGH and ATR. There is no reasonable way of allocating the resulting goodwill to them. After a number of years, the carrying amount and the recoverable amount of the net assets of the CGUs, togetherwith the purchased goodwill (calculated using the full goodwill method), are as follows: HNE ATR Carrying Amount Recoverable Amount Frw 1,440,000 1,800,000 DGH Frw 2,160,000 1,700,000 Required: 1. Produce the revised values of Cash Generating Units here above 2. Make proper journal entries Frw 2,520,000 2,160,000 Goodwill Frw 900,000 Total Frw 7,020,000 5,660,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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