2011年ACCA考试模拟试题（3）

　　(ii) On 1 June 2007，Bravado acquired 6% of the ordinary shares of Mixted. Bravado had treated this investment as available-for-sale in the financial statements to 31 May 2008 but had restated the investment at cost on Mixted becoming a subsidiary. On 1 June 2008，Bravado acquired a further 64% of the ordinary shares of Mixted and gained control of the company. The consideration for the acquisitions was as follows：

　　Holding Consideration

　　$m

　　1 June 2007 6% 10

　　1 June 2008 64% 118

　　- -

　　70% 128

　　- -

　　Under the purchase agreement of 1 June 2008，Bravado is required to pay the former shareholders 30% of the profits of Mixted on 31 May 2010 for each of the financial years to 31 May 2009 and 31 May 2010. The fair value of this arrangement was estimated at $12 million at 1 June 2008 and at 31 May 2009 this value had not changed. This amount has not been included in the financial statements.

　　At 1 June 2008，the fair value of the equity interest in Mixted held by Bravado before the business combination was $15 million and the fair value of the non-controlling interest in Mixted was $53 million. The fair value of the identifiable net assets at 1 June 2008 of Mixted was $170 million (excluding deferred tax assets and liabilities)， and the retained earnings and other components of equity were $55 million and $7 million respectively. There had been no new issue of share capital by Mixted since the date of acquisition and the excess of the fair value of the net assets is due to an increase in the value of property，plant and equipment (PPE)。

　　The fair value of the PPE was provisional pending receipt of the final valuations for these assets. These valuations were received on 1 December 2008 and they resulted in a further increase of $6 million in the fair value of the net assets at the date of acquisition. This increase does not affect the fair value of the non-controlling interest. PPE is depreciated on the straight-line basis over seven years. The tax base of the identifiable net assets of Mixted was $166 million at 1 June 2008. The tax rate of Mixted is 30%.

　　(iii) Bravado acquired a 10% interest in Clarity，a public limited company，on 1 June 2007 for $8 million. The investment was accounted for as an available-for-sale investment and at 31 May 2008，its value was $9 million. On 1 June 2008，Bravado acquired an additional 15% interest in Clarity for $11 million and achieved significant influence. Clarity made profits after dividends of $6 million and $10 million for the years to 31 May 2008 and 31 May 2009.

　　(iv) On 1 June 2007，Bravado purchased an equity instrument of 11 million dinars which was its fair value. The instrument was classified as available-for-sale. The relevant exchange rates and fair values were as follows：

　　$ to dinars Fair value of instrument -

　　dinars

　　1 June 2007 4.5 11

　　31 May 2008 5.1 10

　　31 May 2009 4.8 7

　　Bravado has not recorded any change in the value of the instrument since 31 May 2008. The reduction in fair value as at 31 May 2009 is deemed to be as a result of impairment.

　　(v) Bravado manufactures equipment for the retail industry. The inventory is currently valued at cost. There is a market for the part completed product at each stage of production. The cost structure of the equipment is as follows：