Sbr (int/UK) Strategic Business Reporting

 

 

(Part (a) (ii): 5 marks max) 

(b) (i)  Disposal 

group 

A disposal group is defined as a group of assets and liabilities directly 

associated with the assets (as well as any goodwill allocated to the group if it is 

a cash generating unit, as per IAS 36 Impairment of Assets) which are to be 

sold or transferred within a single transaction. 

(1 mark) 

Therefore any assets which are to be sold individually or any liabilities which 

are not to be transferred to the acquirer should not be included within the 

disposal group. 

(1 mark) 

However, it is Beth’s intention to sell its shareholding rather than any 

individual assets. The acquirer would also obtain all of the rights and 

obligations which pertain to Jam. 

(1 mark) 

It therefore seems appropriate to treat all of the net assets (including goodwill) 

of Jam as a disposal group.