（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：
　　Cost per unit Selling price per unit
　　$ $
　　Production process - 1st stage 1，000 1，050
　　Conversion costs - 2nd stage 500
　　-
　　Finished product 1，500 1，700
　　-
　　The selling costs are $10 per unit and Bravado has 100，000 units at the first stage of production and 200，000 units of the finished product at 31 May 2009. Shortly before the year end，a competitor released a new model onto the market which caused the equipment manufactured by Bravado to become less attractive to customers. The result was a reduction in the selling price to $1，450 of the finished product and $950 for 1st stage product.
　　（vi）The directors have included a loan to a director of Bravado in cash and cash equivalents of $1 million. The loan has no specific repayment date on it but is repayable on demand. The directors feel that there is no problem with this accounting entry as there is a choice of accounting policy within International Financial Reporting Standards （IFRS） and that showing the loan as cash is their choice of accounting policy as there is no IFRS which says that this policy cannot be utilised.
　　（vii） There is no impairment of goodwill arising on the acquisitions.
　　高顿网校温馨提示：　通过ACCA考试实属不易，首先要有执着的精神，其次是不断勤奋的学习，高顿网校为大家提供ACCA题库免费做题，希望助大家一臂之力，查看详情》
ACCA网络课程课程专业名称讲师试听
85%的人正在学习该课程ACCA 全维度网课体验课程
实景课堂与独立录制
覆盖所有知识点，根据学习计划推进学习进度
高顿名师
70%的人正在学习该课程ACCA网课全科卡（8.2折）
为零基础刚开始学习ACCA的学员特别定制		高顿名师