Bihar Ltd is a giant mining company based in Western Australia. As part of its expansion plans,

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Bihar Ltd is a giant mining company based in Western Australia. As part of its expansion plans, the directors have recently considered some strategic decisions to acquire shares in two other businesses: Amida Ltd and BW Ltd. Amida Ltd is a newly formed mining company in Bundaberg, and BW LTD is a giant apparel company which holds several local brands with retail shops across metropolitan cities in Sydney, Melbourne and Brisbane. The progress of the business acquisitions is detailed below.

Amida Ltd - the negotiation is still going on. Bihar Ltd is to acquire 40% of voting shares in Amida Ltd, where the balance of 60% voting shares is equally owned by the founding shareholders, Mr and Mrs Ruch. As Mr & Mrs Ruch are new to the mining business, they have given 4 out of 6 seats available on the board of directors to Bihar Ltd so they can impart their experiences in any decisions of Amida Ltd. Bihar Ltd takes the lead in all decisions made for the business operations, but Mr & Mrs Ruch holds the other two seats in the board and are charged to monitor the business closely. The understanding is that once Mr & Mrs Ruch become familiar with the business operations, then they will take over the decision making responsibility.

BW Ltd - Bihar Ltd has finalised this deal and acquired 100% of the voting shares in BW Ltd on 1 July 2022. All the identifiable net assets of BW Ltd were recorded at fair value at the date of acquisition, except for inventory and plant, that had fair values of $5,000 and $12,000 higher than their carrying amount, respectively. The goodwill in BW Ltd's books was impaired by half for the year ended 30 June 2023. All of the inventory was sold to external parties by 30 June 2023. The plant has a further 5-year life and is to be depreciated on a straight-line basis.

On 1 July 2022, the financial information of the two companies was as follows:

	Bihar Ltd Ltd	BW Ltd
	$	$
Share capital	450,000	200,000
Retained earnings 1 July 2022	150,000	130,300
Current liabilities	171,000	64,000
Non-current liabilities	76,500	95,000
	847,500	489,300
Cash & cash equivalents	55,000	72,000
Accounts receivable	47,000	56,000
Inventory	45,000	106,300
Land and buildings - at cost	400,000
Accumulated depreciation - buildings	(120,000)
Plant - at cost		400,000
Accumulated depreciation - plant		(160,000)
Goodwill		15,000
Investment in BW Ltd	420,500
	847,500	489,300

It is determined that Bihar Ltd has gained 'control' over BW Ltd as of date of acquisition in accordance with AASB 10Consolidated Financial Statements.