20181108_Hometask.docx - Angel Angel is an entity that regularly purchases new subsidiaries On 30 June 2018 the entity acquired all the equity shares of

20181108_Hometask.docx - Angel Angel is an entity that...

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Angel Angel is an entity that regularly purchases new subsidiaries. On 30 June 2018, the entity acquired all the equity shares of Prospects for a cash payment of $260 million. The net assets of Prospects on 30 June 2018 were $180 million and no fair value adjustments were necessary upon consolidation of Prospects for the first time. On 31 December 2018, Angel carried out a review of the goodwill on consolidation of Prospects for evidence of impairment. The review was carried out despite the fact that there were no obvious indications of adverse trading conditions for Prospects. The review involved allocating the net asset of Prospects into three cash-generating units and computing the value in use of each unit. The carrying values of the individual units before any impairment adjustments are given below. Unit A Unit B Unit C $ million $ million $ million Patents 5 – – Property, plant and equipment
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  • Spring '16
  • Robert Stavins
  • Balance Sheet, Generally Accepted Accounting Principles, $ million, $180 million, $260 million

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