Kevin Plc acquired 70% of Carl Ltd on 1 April 2021 for £3,250,000 when Carl's retained earnings were £1,500,000. The group's policy is to measure NCI at fair value at acquisition. An impairment review was performed on 31 March 2022, and this indicated that goodwill had impaired by £850,000. Which of the following statements is/are correct in respect of the consolidated retained earnings at 31 March 2022? (1) 100% of Kevin's post acquisition retained earnings will be included (2) 100% of Carl's post acquisition retained earnings will be included (3) Goodwill impairment of £850,000 will be deducted O a. (1) only O b. (2) only O c. (1) and (2) only O d. (1) and (3) only O e. (2) and (3) only O f. (1), (2) and (3)

Kevin Plc acquired 70% of Carl Ltd on 1 April 2021 for £3,250,000 when Carl's retained earnings were £1,500,000. The group's policy is to measure NCI at fair value at acquisition. An impairment review was performed on 31 March 2022, and this indicated that goodwill had impaired by £850,000. Which of the following statements is/are correct in respect of the consolidated retained earnings at 31 March 2022? (1) 100% of Kevin's post acquisition retained earnings will be included (2) 100% of Carl's post acquisition retained earnings will be included (3) Goodwill impairment of £850,000 will be deducted O a. (1) only O b. (2) only O c. (1) and (2) only O d. (1) and (3) only O e. (2) and (3) only O f. (1), (2) and (3)

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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