Homework Answers
| In the given question, | RM in million |
| Fair value of Changi corporation as per appraisal | 132 |
| Fair value of Changi corporation's net assets (excluding goodwill) | 120 |
| Goodwill is the difference in fair value as per appraisal and net assets or excess of amount than the fair value of net assets | |
| Fair value of goodwill = 132-120 | 12 |
| Carrying value of goodwill in Chenor Ltd | 38 |
| Impairment occurs if carrying value is less than recoverable value or value in use whichever is higher | |
| Recoverable value = Fair value - costs to sell = | 12 |
| Value in use of the company is given as (Present value) | 135 |
| Fair value of the company as per appraisal | 132 |
| Goodwill = excess of value in use over fair value = 135-132 | 3 |
| Higher of fair value and value in use = | 12 |
| Carrying value of goodwill in Chenor Ltd | 38 |
| Impairment = 38-12 = | 26 |
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