Smashed and Parts Palace
The Subsidiary, Smashed On 31 December 2016, Parts Palace Limited acquired 60% of the shares in Smashed Limited. On that date, the equity of Smashed Limited comprised: $ 000 Share capital 700 Retained earnings 400 Equity $1,100 At acquisition, the book value of the assets and liabilities of Smashed Limited were considered to be at fair value, except for some non-depreciable assets (included under ‘Other non-current assets’ and considered to be part of net identifiable assets) that had a book value of zero and where Parts Palace assessed their fair value to be $170,000. There has been no change to assessed value of these assets since acquisition. Goodwill impairment At the most recent balance date (31 December 2019), the…
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