KHR Ltd acquired a business consisting of 3 cash-generating units: HNE, DGH and ATR. There is no reasonable way of allocating the resulting goodwill to them. After a number of years, the carrying amount and the recoverable amount of the net assets of the CGUs, togetherwith the purchased goodwill (calculated using the full goodwill method), are as follows: HNE ATR Carrying Amount Recoverable Amount Frw 1,440,000 1,800,000 DGH Frw 2,160,000 1,700,000 Required: 1. Produce the revised values of Cash Generating Units here above 2. Make proper journal entries Frw 2,520,000 2,160,000 Goodwill Frw 900,000 Total Frw 7,020,000 5,660,000

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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KHR Ltd acquired a business consisting of 3 cash-generating units: HNE, DGH and ATR. There is no
reasonable way of allocating the resulting goodwill to them. After a number of years, the carrying amount and
the recoverable amount of the net assets of the CGUs, togetherwith the purchased goodwill (calculated using
the full goodwill method), are as follows:
HNE
ATR
DGH
Frw
1,440,000
1,800,000
Frw
2,160,000
1,700,000
Carrying Amount
Recoverable Amount
Required:
1. Produce the revised values of Cash Generating Units here above
2. Make proper journal entries
Goodwill
Frw
2,520,000
2,160,000
Frw
900,000
Total
Frw
7,020,000
5,660,000
Transcribed Image Text:KHR Ltd acquired a business consisting of 3 cash-generating units: HNE, DGH and ATR. There is no reasonable way of allocating the resulting goodwill to them. After a number of years, the carrying amount and the recoverable amount of the net assets of the CGUs, togetherwith the purchased goodwill (calculated using the full goodwill method), are as follows: HNE ATR DGH Frw 1,440,000 1,800,000 Frw 2,160,000 1,700,000 Carrying Amount Recoverable Amount Required: 1. Produce the revised values of Cash Generating Units here above 2. Make proper journal entries Goodwill Frw 2,520,000 2,160,000 Frw 900,000 Total Frw 7,020,000 5,660,000
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