Sbr (int/UK) Strategic Business Reporting

(1mark) 

 

(Part b (i): 6 marks max) 

(ii) 

Accounting treatment of Jam 

Before classification of the disposal group as held for sale, the carrying 

amounts of the assets and liabilities are measured in accordance with 

applicable IFRS Standards. 

(1 mark) 

Goodwill in Jam would originally have been calculated as $20 million ($1,250m 

– $1,230m). The net assets of Jam are therefore $1,292 million at 

30 November 20X7 ($1,272m per question + $20m goodwill). 

(1 mark) 

The group has a revaluation policy under IAS 16 Property, Plant and 

Equipment, and so must revalue the property of Jam to fair value of $340m 

immediately prior to classification as held for sale.