Broadbeach Plc Is a Manufacturing Company with Three Subsidiaries What Is the Carrying Amount of Goodwill as at 30

question 15

Multiple Choice

Broadbeach Plc is a manufacturing company with three subsidiaries.The following information relates to the goodwill account of Broadbeach Plc for the year ended 30 June 2013: $$\begin{array} { | l | r | r | r | r | } \hline\text { (in dollars) } & \text { Goodwill } & \begin{array} { c } \text { Accumulated } \\\text { impairment loss }\end{array} & \begin{array} { c } \text { Carrying amount } \\\text { of CGU }\end{array} & \begin{array} { c } \text { Recoverable amount } \\\text { of CGU }\end{array} \\\hline \text { Mantra Ltd } & 50000 & 10000 & 250000 & 270000 \\\hline \text { Oceania Ltd } & 40000 & \text { Nil } & 310000 & 250000 \\\hline \text { Wave Ltd } & 60000 & \text { Nil } & 450000 & 600000 \\\hline\end{array}$$ What is the carrying amount of goodwill as at 30 June 2013 consistent with IAS 36 Impairment of Assets?

• A)Zero
• B)£100 000
• C)£140 000
• D)£150 000

---

Definitions:

Meter

A unit of length in the metric system equal to 100 centimeters or approximately 39.37 inches.

Dimensional-analysis

A method in physics and chemistry for converting one unit of measurement into another, using the fact that the dimensions of the quantity must remain the same.

Kilograms

The base unit of mass in the International System of Units (SI), equivalent to one thousand grams, used globally for measuring weight.

Pounds

A unit of weight in the imperial system, equivalent to 0.453592 kilograms.