What amount of impairment was charged to the cash flow

Assignment Help Financial Accounting
Reference no: EM132978074

Question - You are preparing a consolidated statement of cash flows using the indirect method for Pulsox Group plc for the year ended 31 March 2021. You note that during the financial year to 31 March 2021, Pulsox acquired 80% of CFM Ltd for £125m. The acquisition was settled in cash. At acquisition, the non-controlling interest of CFM Ltd had a fair value of £38m. The following information about CFM Ltd was also made available:

-Property plant and equipment: £20m

-Trade receivables: £3m

-Trade payables: £2m

The closing balance of Pulsox's goodwill account for the year was £78m, and there was no goodwill recorded at the beginning of the financial year. What amount of impairment was charged to the cash flow statement with respect to this transaction?

Reference no: EM132978074

Questions Cloud

How much money will you have at the end : How much money will you have at the end of 30 years under Investment Plan A and Investment Plan B and which plan will you choose
What the right amount of applications was received by June : Terms were 10% p.a. interest, payable annually, with a maturity date of 30 June 2024. Exactly the right amount of applications was received by 30 June 2021
How much is the gain or loss on sale to be recognized : If on April 1, 2021, half of the trading securities are sold for P3,225,000, how much is the gain or loss on sale to be recognized for 2021
What is the carrying amount of the bonds on December : The Raymore Company acquired 10-year bonds on January 1, 2019 to be held as FAAC. What is the carrying amount of the bonds on December
What amount of impairment was charged to the cash flow : The closing balance of Pulsox's goodwill account for the year was £78m, What amount of impairment was charged to the cash flow
What is the total cost of the boat after four years : Question - Elbert purchased a boat for $13,125. He made a down payment of $4,500. What is the total cost of the boat after four years
Define and explain the bond demand and supply curves : Explain the concepts of financial markets, financial institutions, financial instruments, and risk. Define and explain the bond demand and supply curves
What is the horizon value of the interest tax shield : Wilde forecasts the following interest expenses, which are expected to grow at a constant 3% rate after Year 3. What is the horizon value of interest tax shield
Calculate the dirty price of the bond : A 3y bond with 3% semi-annual coupons is trading with a clean price of $102.35. Assuming the day-count convention is Act/Act, calculate the dirty price of bond

Reviews

Write a Review

Financial Accounting Questions & Answers

  Service contract offers free or low-cost repairs to product

A service contract offers free or low-cost repairs to the product

  Make schedule of cash payments to know the cash each partner

Make schedule of cash payments to know the cash each partner will receive. ??Kaur and Singh Company is a partnership business and decides to discontinue

  Make a journal entry for the transaction

December 31st Estimated summary of income with a credit balance of $ 1,570,000 is closed as well as dividends. Make a journal entry for the transaction

  How much of the bond proceeds to allocate to the bond

Calculate how much of the bond proceeds to allocate to the bond and how much to the option. Prepare the journal entry to record the issuance of the bond

  Analyse the role and responsibilities of the tax practitione

Pearson BTEC Level 5 HND Diploma in Business Accounting-Y/601/0904-TAX-Tax Environment and Personal Tax Liability-Describe the UK tax environment.

  Determine the company rate of return after the takeover

Ariella agrees to sell the firm to Charlie for $15 million. Determine the company's rate of return after the takeover

  Evaluate the relative costs to the preparer

Evaluate the relative costs to the preparer and benefits to the users of financial statements of increased disclosure of information in financial statements

  Compute the amount of amortization for this equipment

Compute the amount of amortization for this equipment for all of the 4 years, using Straight Line, UOP, and DDB method

  What amount of interest expense will be recorded

What amount of interest expense will be recorded on June 30, 2018, the first interest payment date?

  How does the firm forecast financial numbers

How does this firm forecast financial numbers? What are the operating, investing, and financing activities for the following firm?

  Which are characteristics of a standard commercial paper

Which are characteristics of a standard commercial paper issue in the U.S.? Sold with an agreement to buy them back at a future date

  What effective annual rate do pay

You are offered trade credit terms of 2/5 net 30. What effective annual rate do you pay if you do not accept the cash discount? Provide the example.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd