a) Calculate the net asset value of a G share.

b) Calculate the necessary compensation payment for a submitted D share if the intrinsic values serve as exchange rates and the exchange ratio is 3 : 1. (Note: The compensation payment is used to achieve an integer exchange ratio).

c) All shares of D are exchanged. State the accounting records at G if these shares are accounted for at intrinsic value.

d) Calculate the net asset value of a G share based on the balance sheet after the transaction.

e) Calculate the recoverable amount of CGU Hotel B.

f) Perform the impairment test according to IAS 36 for CGU Hotel B and determine the amount of any impairment. Regardless of your result in task a), assume that the recoverable amount of the CGU is TCHF 1,990.
 
 

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On January 1, 20_1, G acquires all shares of D. The acquired shares of D are provided by a capital increase at G. After the transaction, D is a subsidiary of G. The balance sheets of G and D, as of 1.1.20_1 (at fair value): Balance sheet Total assets Liabilities Share Capital Capital Reserves Retained Earnings Shares Number Face value Intrinsic value G 10'500'000 5'100'000 2'000'000 3'400'000 20'000 100.- 385.- D 22'500'000 12'000'000 2'500'000 500'000 7'500'000 10'000 250.- 1'200.- On January 1, 20_1, G acquires all shares of D. The acquired shares of D are provided by a capital increase at G. After the transaction, D is a subsidiary of G. The balance sheets of G and D, as of 1.1.20_1 (at fair value): Balance sheet Total assets Liabilities Share Capital Capital Reserves Retained Earnings Shares Number Face value Intrinsic value G 10'500'000 5'100'000 2'000'000 3'400'000 20'000 100.- 385.- D 22'500'000 12'000'000 2'500'000 500'000 7'500'000 10'000 250.- 1'200.-

Answer rating: 100% (QA)

aNet Asset Value of a G Share Total Assets of G Liabilities of G Number of Shares of G 10500000 5100000 10000 500 Therefore the net asset value of a G share is 500 The net asset value of a G share is ... View the full answer