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P4.1 Goodwill fair value adjustments P Co issued 2,000,000 of its own shares (fair value of $10 per share) and paid $6,000,000 in cash to the existing owners of S Co to acquire 90% of the shares of S Co on I July 20x1. Fair value of non-controllinig interests was $2,800,000 at the date of acquisition. The book and fair values of SCo 's assets and liabilitie's as at 1 July 20xl are stiown below: Additional information: (a) The remaining useful life of plant and equipment as at 1 July 20xl was ten years. (b) As at 30 June 202, the fair value of in-process R\&D was reliably assessed at $5,500,000. Ict) 9os of the inventory was sold by 39 fane 202 and the balance 10% was deemed as impaired on 30 June 20x. Ic) The tair value model is to be adopled for imventsent property in the coacilidated financial thatements, that in, changes in fair value after initial recogniation are taken to the incorat statement. As, at 30 lune 200 , the fair value of the investment property was $16,000.000.5 Co incorrectly applied the cost model (wiaboet deprecizlion) to measure the imvetment property in its separate financial statements. (e) As at 30 hane 20x2, no racognition was rade for coatirgent liabilities in the separate financial statements of S Ca-However, a Eisc opare was made in the fouteotes af S Co in relation to the contingent liabilities. As at 30 June 20

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