Tasneem Sdn Bhd acquired Lapmin Sdn Bhd, an unincorporated entity, for RM2.8 million. A fair value exercise performed on Lowdown’s net assets at the date of purchase showed: RM'000 Property, plant and equipment 3,000 Identifiable intangible asset 500 Inventory 300 Trade receivables less payables 200 4,000 How would the purchase be reflected in the consolidated statement of financial position? A. Record the purchase as a financial asset investment at RM2.8 million B. Ignore the intangible asset (RM500,000), recording the remaining net assets at their values shown above and crediting profit or loss with RM700,000 C. Record the net assets at their above values and credit profit or loss with RM1.2 million D. Record the net assets at their above values and credit goodwill with RM1.2 million
Tasneem Sdn Bhd acquired Lapmin Sdn Bhd, an unincorporated entity, for RM2.8 million. A fair value exercise performed on Lowdown’s net assets at the date of purchase showed: RM'000 Property, plant and equipment 3,000 Identifiable intangible asset 500 Inventory 300 Trade receivables less payables 200 4,000 How would the purchase be reflected in the consolidated statement of financial position? A. Record the purchase as a financial asset investment at RM2.8 million B. Ignore the intangible asset (RM500,000), recording the remaining net assets at their values shown above and crediting profit or loss with RM700,000 C. Record the net assets at their above values and credit profit or loss with RM1.2 million D. Record the net assets at their above values and credit goodwill with RM1.2 million
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
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Tasneem Sdn Bhd acquired Lapmin Sdn Bhd, an unincorporated entity, for RM2.8 million. A fair value exercise performed on Lowdown’s net assets at the date of purchase showed:
| RM'000 | |
| Property, plant and equipment | 3,000 |
| Identifiable intangible asset | 500 |
| Inventory | 300 |
| Trade receivables less payables | 200 |
| 4,000 |
How would the purchase be reflected in the consolidated statement of financial position ?
A. Record the purchase as a financial asset investment at RM2.8 million
B. Ignore the intangible asset (RM500,000), recording the remaining net assets at their
values shown above and crediting profit or loss with RM700,000
values shown above and crediting profit or loss with RM700,000
C. Record the net assets at their above values and credit profit or loss with RM1.2 million
D. Record the net assets at their above values and credit goodwill with RM1.2 million
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