A Y Ltd acquired K Ltd at a cost of $2 8m The fair value of K Ltd 's assets is assessed at $3 5m and the fair value of its liabilities at $1 4m Calculate the amount of goodwill to be recorded in the balance sheet of Y Ltd B Briefly outline two major advantages of the trust as a form of business str...

a Fair value of net assets acquired Fair value of assets less fair value of liabilities 35m 14m 21m ...

A. Y Ltd acquired K Ltd at a cost of $2.8m. The fair value of K Ltd's

Question:

A. Y Ltd acquired K Ltd at a cost of $2.8m. The fair value of K Ltd's assets is assessed at $3.5m and the fair value of its liabilities at $1.4m. Calculate the amount of to be recorded in the of Y Ltd.
B. Briefly outline two major advantages of the trust as a form of business structure.
C. Briefly discuss the role that the stock exchange plays in the business environment.
D. List four desirable qualitative characteristics of financial accounting information that are found in the Conceptual Framework and explain the meaning of two of the characteristics you have listed.
Goodwill
Goodwill is an important concept and terminology in accounting which means good reputation. The word goodwill is used at various places in accounting but it is recognized only at the time of a business combination. There are generally two types of... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...