a$.)$ Kutemwa Ltd acquired $100\%$ of a subsidiary, Zambezi Ltd$,$ on $1$

January $2021.$ The carrying amount of the assets of Zambezi Ltd in

the consolidated financial statements of the Kutemwa Ltd at $31$

December $2021,$ immediately before an impairment review, were as

follows:

The recoverable amount of Zambezi Ltd was estimated at $K9*6$ million

at $31$ December $2021$ and the impairment of the investment in Zambezi

Ltd was deemed to be K$22$ million. Kutemwa Ltd applies IAS $16$:

Property, Plant and Equipment and IAS $36$: Impairment of Assets in

preparing its financial statements.

Required:

Assuming Zambezi Ltd represents a cash generating unit, show the

financial reporting treatment of the brand name at $31$ December $2021$

in the books of Kutemwa Ltd following the impairment review.

$(5$ marks$)$

b$.)$ An important aspect of the International Accounting Standards

Board's Framework for the preparation and presentation of financial

statements is that transactions should be recorded based on their

substance over their form.

Required:

Explain why it is critical for financial statements to reflect substance

over their form.

$(5$ marks$)$

It is said that ethics starts with preparers of financial information.

Accountants in business are responsible for the preparation and

presentation of accounting information.

c$.)$ a$.)$ Explain TWO $(4)$ responsibilities of Accountants in business

with regard to the statement above in the preparation of financial

information.

$(4$ marks$)$

b$.)$ Explain TWO $(3)$ difficult circumstances where an

Accountant in Business could be pressured to act unethically.

$(6$ marks$)$

d$.)$ The main objective of IFRS $5$: Non$-$current Assets Held for Sale

and Discontinued Operations specifies, among others, accounting

for, the presentation, and disclosure of discontinued operations.

Required:

With reference to IFRS $5,$ define a discontinued operation and explain

why the disclosure of such information is important to users of

financial statements.