Chapter 19 Consolidated Statement of Financial Position with Consolidated Adjustments

Answer Exercise 1 Solution: W1 Shareholdings in S Ltd. Group Non-controlling interest % 90 10 100 W2 Unrealised profit in inventor ! "1#$000 % &0'1&0 % 2'( ! ")$000 Consolidated adjustment: Group retained earnings +)$000 % 90%, Non-controlling interest +)$000 % 10%, Group inventor W( Net asset of S Ltd /t date of ac0uisition "000 & & 10 /t the reporting date "000 & (1 +), (2 *r +", ($.00 )00 -r +",

)$000

Share capital Share pre1iu1 Unrealised profit in inventor +W2, Net assets W) -alculation of Good2ill 3arent holding +invest1ent, at fair value N-4 value at ac0uisition

"000 () ) (# +10, 2# +10,

Less5 6air value of net assets at ac0uisition +W2, Good2ill on ac0uisition Less5 41pair1ent

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-arr ing good2ill W& Non-controlling interest N-4 value at ac0uisition +W), N-4 share of post ac0uisition reserves 710% % +(2 8 10,9 Less5 N-4 share of i1pair1ent +10% %"10,

1#

"000 ) 2.2 +1, &.2

W. Group retained earnings : Ltd S Ltd5 90% % +(2 8 10, Less5 41pair1ent +90% % 10, "000 1&9 19.# +9, 1.9.# -onsolidated state1ent of financial position as at (1 *ece1;er 2010 Non current assets "000 "000 Good2ill +W), 1# 3ropert $ plant and e0uip1ent +100 < (0, 1(0 1)# Current assets 4nventor +90 < 20 8 ) +W2,, =rade receiva;les +11& < 2& 8 22 4nterco, -ash +10 < &, !otal assets E"uit# and lia$ilities E"uit# Share capital >etained earnings +W., Non-controlling interest +W&, Non current lia$ilities +120 < 2#, Current lia$ilities 10. 11( 1&

2() (#2

1&.0 1.9.# 1#).# &.2 190 1)#

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+&0 < 1. 8 22 4nterco, !otal e"uit# and lia$ilities

)) (#2

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