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

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Definitions:

Autonomic Nervous System

The segment of the nervous system responsible for regulating automatic body processes such as cardiac rhythm, digestive functions, and breathing rate.

Self-indulgence

The act of gratifying one's own desires, impulses, or interests, often at the expense of broader considerations or duties.

Defence Mechanisms

Mental tactics employed subconsciously by people to shield themselves from stress and to deal with reality or preserve their self-perception.

Unpleasant Emotions

Feelings that are distressing or causing discomfort, such as sadness, anger, or fear.