Johny Saha IIPage |1

Q-ND-2012(QN-3b): Bulk Investment Ltd acquired the following companies on 1 January 2012:

Mim Limited (Tk '000) Zeem Ltd (Tk '000)

(a) Acquisition status Full acquisition 75% acquisition
(b) Assets, equity and liabilities Cost Market value Cost Market value
(i) Property, plant and equipment 35,000 40,000 4,500 4,200
(ii) Inventories 1,000 890 670
(iii) Trade debtors 2,500 2,400 750 700
(iv) Cash and cash equivalents 1,200 500
(v) Current liabilities 1,390 870
(vi) Provision for gratuity 2,500 2,890 900 955
(vii) Deferred tax liability 450 75
(viii) Share capital (Tk 100 par value) 25,000 1,900
(ix) Retained earnings 10,360 2,675
(c) Cost of acquisition:
(i) Cash payment 25,000 3,000
(ii) Issuance of shares 16,000 2,000

Required:
(i) Calculate the goodwill on the investment in Mim Limited as at 1 January 2012 in compliance with BFRS 3. 5
(ii) Calculate the goodwill on the investment in Zeem Ltd as at 1 January 2012 in compliance with BAS 27. 5
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