353411723.

xls

Statements of Comprehensive Income for the year ended 31 December 20X4

Duck Ltd Pond Ltd
$'000 $'000
Sales revenue 10,500 5,650
Cost of sales
Opening Inventories 1.1.X4 (3,800) (2,675)
Purchases (7,300) (3,500)
Closing Inventories 31.12.X4 3,500 1,875
Gross profit 2,900 1,350
Other expenses (1,310) (250)
Dividend revenue 320 -
Management fee revenue 130 -
Profit before tax 2,040 1,100
Tax expense (680) (310)
Profit for the year 1,360 790
Other comprehensive income
Revaluationsurplus 350 150
Related tax (105) (45)
Total comprehensive income for the year 1,605 895

SCI
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SCI
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Additional information
$'000
Cost of acquisition 4,810

Equity at 1 January 20X0

Issued capital 3,000
Revaluation surplus 600
Retained earnings 1.1.X0 800
Total equity 4,400

Additional information part (a)

$'000
Intra-group sales of inventory by Auckland to Nelson during
20X3 700
Intra-group sales of inventory by Nelson to Auckland during
20X3 1,200

Additional information part (b)

$'000
Unrealised profit in opening inventory of Auckland 60
Unrealised profit in closing inventory of Auckland 80

Additional information part (c)

$'000
Management fee charged by Auckland to Nelson 130

Additional information part (f)

$'000
Impairment of goodwill relating to acquisition of Nelson 220

Additional information part (g)

Company income tax rate 30%

Info
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Statements of financial position at 31 December 20X4

Duck Ltd Pond Ltd
$'000 $'000
Assets
Current Assets
Inventories 3,500 1,875
Other current assets 860 1,050
Total current assets 4,360 2,925

Non-Current Assets
Property, plant and equipment 8,535 5,155
Financial assets 4,810 -
Total non-current assets 13,345 5,155

Total assets 17,705 8,080

Liabilities
CurrentLiabilities
Current taxes payable 790 370
Other liabilities 2,120 1,035
Total current liabilities 2,910 1,405

Totalliabilities 2,910 1,405

Net assets 14,795 6,675

Equity
Issued capital 11,200 3,000
Revaluation surplus 1,365 705
Retained earnings 2,230 2,970
Total equity 14,795 6,675

Duck Ltd
Statement of changes in equity for the year ended 31 December 20X4
Issued Retained
Capital Earnings
Balance at 1/1/X4 11,200 1,110
Profit for the year 1,360
Other comprehensive income
Revaluation surplus (net of tax)
Total comprehensive income 1,360
Transactions with Duck Ltd shareholders
Dividends paid (240)
Balance at 31/12/20X4 11,200 2,230

Pond Ltd
Statement of changes in equity for the year ended 31 December 20X4
Issued Capital Retained
Earnings
Balance at 1/1/X4 3,000 2,500

SFP
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Profit for the year 790

Other comprehensive income
Revaluation surplus (net of tax)
Total comprehensive income 790
Transactions with Pond Ltd shareholders
Dividends paid (320)
Balance at 31/12/20X4 3,000 2,970

SFP
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Revaluation Total
Surplus
1,120 13,430

245
245 1,605

(240)
1,365 14,795

Revaluation Total
Surplus
600 6,100

SFP
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105
105 895

(320)
705 6,675

SFP
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Acquisition analysis for Duck Ltd's investment in Pond Ltd on 1 January 20X1
$'000 $'000
Consideration transferred
Purchase consideration 4,810

Identifiable assets and liabilities assumed as recorded

represented by:
Issued capital 3,000
Revaluation surplus 700
Retained earnings 800
Identifiable assets and assumed liabilities at fair value 4,500
Interest acquired by Duck Ltd 100% (4,500)
Goodwill on acquisition 310

Acq
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Consolidation worksheet - 31 December 20X4

Duck Pond Adjustments Consolidated
Ltd Ltd and eliminations Entity
$'000 $'000 $'000 Ref $'000 $'000
Sales revenue 10,500 5,650 1,900 d 14,250
Cost of sales
Opening Inventories 1.1.X4 (3,800) (2,675) e 60 (6,415)
Purchases (7,300) (3,500) d 1,900 (8,900)
Closing Inventories 31.12.X4 3,500 1,875 80 g 5,295
Gross profit 2,900 1,350 4,230
Impairment loss - Goodwill - - 220 b (220)
Other expenses (1,310) (250) i 130 (1,430)
Dividend revenue 320 - 320 c -

Management fee revenue 130 - 130 i -

Profit before tax 2,040 1,100 2,580
Tax expense (680) (310) 18 f/h 24 (984)
Profit for the year 1,360 790 1,596
Opening retained earnings 1,110 2,500 800 a 2,768
60 e/f 18
Dividends paid (240) (320) c 320 (240)
- - -
Closing retained earnings 2,230 2,970 4,124
Issued capital 11,200 3,000 3,000 a 11,200
Revaluation surplus 1,365 705 700 a 1,370
Total equity 14,795 6,675 16,694
Current taxes payable 790 370 1,160
Other liabilities 2,120 1,035 3,155
Total equities and liabilities 17,705 8,080 21,009

Inventories 3,500 1,875 g 80 5,295

Other current assets 860 1,050 1,910
Property, plant and equipment 8,535 5,155 13,690
Financial assets 4,810 - a 4,810 -
Goodwill on acquisition - - 310 b 310
Accumulated impairment losses - - b 220 (220)
Deferred tax assets - - 24 h 24
Total assets 17,705 8,080 7,562 7,562 21,009

CWorksheet
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Consolidation worksheet - 31 December 20X4 (continued)

Duck Pond Adjustments Consolidated
Ltd Ltd and eliminations Entity
$'000 $'000 $'000 Ref $'000 $'000
Income
Profit for the year 1,360 790 2,150
Revaluation surplus 350 150 500
Related tax (105) (45) (150)
Total comprehensive income for
the year 1,605 895 2,500

CWorksheet
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Consolidated

CWorksheet
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Consolidated

CWorksheet
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Consolidation journal entries - 31 December 20X4

(a) Elimination of cost of investment in Pond Ltd against acquired capital,

reserves and retained earnings
$'000 $'000
Dr. Issued capital 3,000
Dr. Revaluation surplus 700
Dr. Retained earnings 800
Dr. Goodwill on acquisition 310
Cr. Financial assets 4,810

(b) Recognition of impairment loss on goodwill relating to current financial year

$'000 $'000
Dr. Impairment loss - Goodwill 220
Cr. Accumulated impairment losses 220

(c) Elimination of intragroup dividends paid by Pond Ltd during 20X4

$'000 $'000
Dr. Dividend revenue 320
Cr. Dividends paid 320

(d) Elimination of intragroup sales made during the 20X4 year,

i.e. $1,200,000 + $700,000 = $1900,000
$'000 $'000
Dr. Sales revenue 1,900
Cr. Cost of sales - Purchases 1,900

(e) Elimination of unrealised profit in Duck Ltd's opening inventory,

$'000 $'000
Dr. Opening retained earnings 60
Cr. Cost of sales - inventories 1.1.X4 60

(f) Recognition of tax effect relating to the elimination of unrealised profit in

opening inventory, i.e. 30% x $60,000 = $18,000.
$'000 $'000
Dr. Tax expense 18
Cr. Opening retained earnings 18

CJournal Page 13
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Consolidation journal entries 31 December 20X4 (continued)

(g) Elimination of unrealised profit in Duck Ltd's closing inventory.

$'000 $'000
Dr. Cost of sales - Inventories 31.12.X4 80
Cr. Inventories 80

(h) Recognition of tax effect relating to the elimination of unrealised profit in

closing inventory, i.e. 30% x $80,000 = $24,000.
$'000 $'000
Dr. Deferred tax assets 24
Cr. Tax expense 24

(i) Elimination of intragroup management fee paid during the 20X4 year.
$'000 $'000
Dr. Management fee revenue 130
Cr. Other expenses (Management fee expense) 130

CJournal Page 14
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Duck Ltd Group

Consolidated statement of Comprehensive Income for year ended 31 December 20X4
Consolidated
$'000
Sales revenue 14,250
Cost of sales (10,020)
Gross profit 4,230
Impairment loss - Goodwill (220)
Other expenses (1,430)
Profit before tax 2,580
Tax expense (984)
Profit for the year 1,596
Other comprehensive income
Items that will not be subsequently reclassified
to profit or loss
Revaluation surplus 500
Related tax (150)
Total comprehensive income for the year 1,946

Cons_Stats
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Duck Ltd Group

Statement of financial position as at 31 December 20X4
Consolidated
$'000
Assets
Current Assets
Inventories 5,295
Other current assets 1,910
Total current assets 7,205

Non-Current Assets
Property, plant and equipment 13,690
Goodwill (net) 90
Deferred tax assets 24
Total non-current assets 13,804
Total assets 21,009

Liabilities
Current Liabilities
Current taxes payable 1,160
Other liabilities 3,155
Total current liabilities 4,315
Total liabilities 4,315
Net assets 16,694
Equity
Issued capital 11,200
Revaluation surplus 1,370
Retained earnings 4,124
Total equity 16,694

Duck Ltd Group

Consolidated statement of changes in equity for the year ended 31 December 20X4
Issued Capital Revaluation
Surplus
$'000 $'000
Balance at 1/1/X4 11,200 1,020
Profit for the year
Other comprehensive income
Revaluation surplus (net of tax) 350
Total comprehensive income 350
Transactions with Duck Ltd shareholders
Dividends paid
Closing balance 11,200 1,370

Cons_Stats
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Cons_Stats
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Retained Total
Earnings
$'000 $'000
2,768 14,988
1,596

1,596 1,946

(240) (240)
4,124 16,694

Cons_Stats