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…

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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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?

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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