=+Question 1 (Based on ICAI, P3 Summer 2004, Question 6)

You are the accountant for COCKTAIL Group, which consists of three companies:

COCKTAIL ple (COCKTAIL), UMBRELLA Limited (UMBRELLA), and CHERRY 566 INTERNATIONAL FINANCIAL ACCOUNTING AND REPORTING Limited (CHERRY). The individual company statements of financial position as at 31 December 2003 are presented below.

COCKIAIL UMBRELLA CHERRY

€ million € million € million ASSETS :

Non-current Assets t Property, plant and equipment 324 168 180 Investment in UMBRELLA and CHERRY 450 a =

774 168 180 Current Assets Inventory 144 108 90 Receivables ‘ (@? 102 96 Current account with UMBRELLA = 25 — -

Bank and cash __288 . te neg 1,303 34 572 EQUITY AND LIABILITIES Capital and reserves:

€1 ordinary shares 360 120 108 Retained earnings me Pes 186 212 1,182 306 ca Current Liabilities Trade payables 61 33 40 Current account with COCKTAIL of 5 =

Other payables 60 _40 20 1,303 384372 Additional Information