Chonglee Co acquired 80% of the ordinary share SINO Conon 1 April 20x5. On 31 December...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Chonglee Co acquired 80% of the ordinary share SINO Conon 1 April 20x5. On 31 December 20x4 SINO Co's accounts showed a share premium account of K 4 000 and retained earnings of K 15 000. The statement of financial position of the two companies at 31 December n20x5 are set out below. Statement of financial position as at 31 December 20x5 Chonglee Co & SINO Co K K Assets Non-current assets Property, plant and equipment 32 000 16 000 ordinary shares of 50c each in SINO Co Current assets 50 000 82 000 85 000 30 000 43 000 Total assets Equity and liabilities Equity Ordinary shares of K1 each Ordinary shares of 50c each Share premium account Retained earnings Current liabilities Total equity and liabilities 167 000 73 000 Additional information (i) Neither company has paid any dividends during the year. Non-controlling interest should be valued at full fair value. (ii) The market price of the subsidiary's shares was K2.50 prior to acquisition the parent. Required Prepare the consolidated statement of financial position of Choinglee Co as at 31 December 20x 5. (25 marks). 167 000 100 000 10 00 7 000 40 000 147 000 20 000 73 000 4 000 39 000 53 000 20 000 Chonglee Co acquired 80% of the ordinary share SINO Conon 1 April 20x5. On 31 December 20x4 SINO Co's accounts showed a share premium account of K 4 000 and retained earnings of K 15 000. The statement of financial position of the two companies at 31 December n20x5 are set out below. Statement of financial position as at 31 December 20x5 Chonglee Co & SINO Co K K Assets Non-current assets Property, plant and equipment 32 000 16 000 ordinary shares of 50c each in SINO Co Current assets 50 000 82 000 85 000 30 000 43 000 Total assets Equity and liabilities Equity Ordinary shares of K1 each Ordinary shares of 50c each Share premium account Retained earnings Current liabilities Total equity and liabilities 167 000 73 000 Additional information (i) Neither company has paid any dividends during the year. Non-controlling interest should be valued at full fair value. (ii) The market price of the subsidiary's shares was K2.50 prior to acquisition the parent. Required Prepare the consolidated statement of financial position of Choinglee Co as at 31 December 20x 5. (25 marks). 167 000 100 000 10 00 7 000 40 000 147 000 20 000 73 000 4 000 39 000 53 000 20 000
Expert Answer:
Answer rating: 100% (QA)
Consolidated statement of financial position of Choinglee Co As of 31 December 20x5 Assets Nonc... View the full answer
Related Book For
International Financial Reporting A Practical Guide
ISBN: 978-1292200743
6th edition
Authors: Alan Melville
Posted Date:
Students also viewed these accounting questions
-
Leila owns 14% of the ordinary share of Datafarm Ltd. Assume dividends from Datafarm is the only income Leila has and she has no savings. In early March, 2020, Datafarm Ltd reported net profits after...
-
Windermere has been offered 45% of the ordinary share capital of Ambleside Ltd (Ambleside), a provider of telecommunications devices in Mauritania, a new market in which Windermere has very little...
-
PP Ltd acquired 65% of the ordinary share capital of QQ Ltd on 1 January 2017. There are no preference shares. The statements of comprehensive income of the two companies for the year to 31 December...
-
Verify that the functions are probability density functions for a continuous random variable X over the given interval. Determine the specified probability. f(x) = xe over [0, ), P(1 X 3)
-
Now add Foreign, which has a demand curve D* = 80 - 20P And a supply curve S* = 40 + 20P. a. Derive and graph Foreigns export supply curve and find the price of wheat that would prevail in Foreign in...
-
You decide to value a steady-state company using probability-weighted scenario analysis. In Scenario 1, NOPLAT is expected to grow at 6 percent and ROIC equals 16 percent. In Scenario 2, NOPLAT is...
-
The segments on a palm frond mirror the Fibonacci sequence. If a palm frond contains 89 segments, approximately how many segments would be found on the next larger palm frond?
-
Diewold Company has two departments, Milling and Assembly. The company uses a job-order costing system and computes a predetermined overhead rate in each department. The Milling Department bases its...
-
help me solve this Calculate the total estimated uncollectibles based on the below information. uestion 9 of 1 0 % uncollectible 2 % - 1 6 Estimated Bad debts $ $ $ eTextbook and Media List of...
-
The flowers in a garden at a resort need to be replaced. The choices for the flowers are Geraniums (G), Impatiens (I), Petunias (P), and Zinnias (Z). The head gardener holds an election in which all...
-
Look again at the Whole Number Place Value Chart at the beginning of this section. As you move to the left, each place is worth ten times as much as the previous place. Computers work on a binary...
-
Problem 4: An air bubble breaks loose from the bottom of a water dish and rises to the surface. Based on Newton's 2nd Law analysis, the bubble is found to have an acceleration given by: a = 80 - 16v...
-
1. Spherical pressure vessels with a radius of 1.0 m and thickness of 25 mm are made of a type of steel with the yield strength of 1600 MPa and fracture toughness of 100 MPam. The cyclic crack growth...
-
Assume that the Board of Directors has chosen to assign $523,000 of the cooperative's Net Income to the Unallocated Reserve (rather than the actual value of $132,170): 1) Who is liable for the...
-
7. Use integration by parts to find cos x ln (sin x) dx. (3 marks) 8. Use integration by partial fractions to find s S 5x+1 2x-x-1 dx. (6 marks)
-
Consider the Specific-Factor model, Capital is specific to the automobile sector while Land is specific to the rice sector. Workers can move freely across sectors. Let us say that the relative price...
-
What is a hypothesis statement? A formal statement describing the solution to the problem A statement of the opportunity that is specific and measurable An educated guess as to the root cause of a pro
-
Fill in each blank so that the resulting statement is true. A solution to a system of linear equations in two variables is an ordered pair that__________ .
-
You have been asked to help prepare the financial statements of Tanhosier Ltd for the year ended 31 March 2018. A trial balance as at 31 March 2018 is shown below. The following further information...
-
Laidlow plc is a construction contractor which prepares financial statements to 31 May each year. The following information relates to a contract with a customer which began during the year to 31 May...
-
The profits after tax of D plc are as follows: Year to 30 September 2016............... 50,000 Year to 30 September 2017............... 52,800 On 1 October 2015, the company's issued share capital...
-
Journalizing materials transactions Dino's Specialty Clothing Inc. uses a job order cost system. A partial list of the accounts being maintained by the company, with their balances as of November 1,...
-
Inventory costing methods The following transactions affecting materials occurred in February: Feb. 1 Balance on hand, 1,200 feet @ $2.76, $3,312.00 (plastic tubing, stores ledger account #906). 5...
-
Analyzing materials and other transactions Pompilio's Manufacturing Company uses a job order cost system. The following accounts have been taken from the books of the company: Required: 1. Analyze...
Study smarter with the SolutionInn App