Conceptual Test

Bulk Investment Ltd acquired the following companies on 1 January 2012:

Mim Limited (Tk '000) Zeem Ltd (Tk '000)

(a) Acquisition status: Full acquisition (100%) 75% acquisition
(b) Assets, equity and liabilities: Cost Market value Cost Market value
i) Property, plant and equipment 35,000 40,000 4,500 4,200
ii) Inventories 1,000 890 670 -----
iii) Trade debtors 2,500 2,400 750 700
iv) Cash and cash equivalents 1,200 ----- 500 -----
v) Current liabilities 1,390 ----- 870 -----
vi) Provision for gratuity 2,500 2,890 900 955
vii) Deferred tax liability 450 ----- 75 -----
viii) Share capital (Tk 100 par value) 25,000 ----- 1,900 -----
ix) Retained earnings 10,360 ----- 2,675 -----
(c) Cost of acquisition:
i) Cash payment 25,000 3,000
ii) Issuance of shares 16,000 2,000

Required:

a) Calculate the goodwill on the investment in Mim Limited as at 1 January 2012 in compliance
with BFRS-3.
b) Calculate the goodwill on the investment in Zeem Ltd as at 1 January 2012 in compliance
with BAS-27.