Acca financial Accounting (FA) Study Text ac ca (FA)

Chapter 23 

KAPLAN PUBLISHING

509 

Required: 

Task 1: 

(a)

Choose the correct calculation of goodwill upon acquisition of

YZ.  

(2 marks) 

Selected 

answer 

(i) 

$400,000 + $100,000 – ($250,000 + $100,000 + 

$40,000) 

(ii)  $400,000 – $100,000 – ($250,000 + $100,000 + 

$40,000) 

(iii)  $400,000 + $100,000 – ($250,000 + $100,000 – 

$40,000) 

(b)

Identify which one of the following would be the correct

classification for goodwill in the consolidated statement of

financial position.

(1 mark)

Selected 

answer 

(i)  A tangible non-current asset 

(ii)  An intangible non-current asset 

(iii) A 

current 

asset 

Task 2 

Complete the following table to state at what amount each of the 

following items should be included in the consolidated statement of 

financial position at 31 December 20X7.  

(5 marks) 

$000 

(i) 

Property, plant and equipment 

(ii) Inventories 

(iii) Trade 

receivables 

(iv)  Trade and other payables 

(v)  7% Bank loan 20X9 

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