(b)

(i) Additional Information
Up to 1 mark for each piece of information recommended and adequately explained.
Database:
– 30 June 2015 financial statements (carrying value)
– Original software purchase agreement
– Software maintenance contract
– Historic records of sales by customer
– Sample customer communications
– Sales forecasts
Licence:
– Original purchase agreement (cost)
– Original purchase agreement (incremental/contingent consideration)
– Licence terms and conditions
– Sales figures for new brand
– Forecast sales for new brand

(ii) Enquiries
Up to 1 mark for enquiry recommended and adequately explained.
– Legal advice regarding who bears the liability
– Legal advice regarding likelihood of settlement
– Basis of estimation of liability
– Settlement of claims since year end
– How long faulty parts used for
– New claims since year end
– Risk of further claims
– Quality problems with other parts
Maximum marks 14
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