$*18\mathrm{.}6$ The statements of financial position of CC Ltd and its two subsidiaries DD Ltd and EE Ltd as at $31$ December $2009$ are as follows:

$306$

Assets

Non$-$current assets

Property and equipment $4,761$ Investment in DD Ltd $600$ Investment in EE Ltd $575$

$5,936$

Current assets

Inventories $1,532$

Trade receivables $1,947$

Cash at bank $2393,718$

$222258$

$30$

$187202$

$13$

Equity

Ordinary share capital $5,000$ Revaluation reserve $2,500$ Retained earnings $547$

Liabilities

Current liabilities

Trade payables $1,607$

$9,654$

The following information is available:

CC Ltd

$000$

DD Ltd

$000521$

$510$

$1,031$

$500-$

$320$

$820$

$211$

$1,031$

EE Ltd

$000411$

$402$

$813$

$300100250$

$650$

$163$

$813$

$$

$9,654$

$8,047$

$($a$)$ CC Ltd acquired $60\%$ of the shares of DD Ltd on $1$ January $2008,$ when DD Ltd had retained earnings of $280,000.$ The fair value of the property and equipment of DD Ltd on that date was $30,000$ more than book value. This valuation has not been reflected in the books of DD Ltd$.$

$($b$)$ CC Ltd acquired $90\%$ of the shares of EE Ltd on $1$ January $2009,$ when EE Ltd had a revaluation reserve of $60,000$ and retained earnings of $230,000.$ The fair value of EE Ltd$\text{'}$s assets and liabilities on that date was equal to their book value.

$($c$)$ Neither DD Ltd nor EE Ltd have issued any shares since being acquired by CC Ltd$.$

$($d$)$ Goodwill arising on consolidation in relation to DD Ltd has suffered an impairment loss of $50\%$ since the date of acquisition. The impairment loss for EE Ltd is $25\%.$

$($e$)$ The following intra$-$group balances exist on $31$ December $2009$:

$-$ DDLtdowesCCLtd$15,000-$ EELtdowesCCLtd$25,000-$ EELtdowesDDLtd$8,000.$

All of these balances are included in trade receivables and payables.

$($f$)$ Goods purchased for $8,000$ from CC Ltd are included in DD Ltd$\text{'}$s inventory at $31$ December $2009.$ CC Ltd had invoiced these goods to DD Ltd at cost plus $60\%.$

Required:

Prepare a consolidated statement of financial position as at $31$ December $2009,$ assuming

that non$-$controlling interests at the date of acquisition are not measured at fair value.$*18\mathrm{.}6$ The statements of financial position of CC Ltd and its two subsidiaries DD Ltd and EE

Ltd as at $31$ December $2009$ are as follows:

CC Ltd

$000$

Assets

Non$-$current assets

Property and equipment

Investment in DD Ltd

Investment in EE Ltd

Current assets

Inventories

Trade receivables

Cash at bank

Cash at bank

Equity

Ordinary share capital

Revaluation reserve

Retained earnings

Liabilities

Current liabilities

Trade payables

DD Ltd

$000$

$4,761$

$521$

$600$

$\frac{575}{5,936}$

$1,532$

$1,947$

$239$

EE Ltd

$000$

$306$

The following information is available:

$($a$)$ CC Ltd acquired $60\%$ of the shares of DD Ltd on $1$ January $2008,$ when DD Ltd

had retained earnings of $280,000.$ The fair value of the property and equipment of

DD Ltd on that date was $30,000$ more than book value. This valuation has not

been reflected in the books of DD Ltd$.$

CHAPTER $18$: GROUPS OF COMPANIES $(1)$

$($b$)$ CC Ltd acquired $90\%$ of the shares of EE Ltd on $1$ January $2009,$ when EE Ltd had

a revaluation reserve of $60,000$ and retained earnings of $230,000.$ The fair value

of EE Ltd$\text{'}$s assets and liabilities on that date was equal to their book value.

$($c$)$ Neither DD Ltd nor EE Ltd have issued any shares since being acquired by CC

Ltd$.$

$($d$)$ Goodwill arising on consolidation in relation to DD Ltd has suffered an impairment

loss of $50\%$ since the date of acquisition. The impairment loss for EE Ltd is $25\%.$

$($c$)$ The following intra$-$group balances exist on $31$ December $2009$:

DD Ltd owes CC Ltd $15,000$

EE Ltd owes CC Ltd $25,000$

EE Ltd owes DD Ltd $8,000.$

All of these balances are included in trade receivables and payables.

$($f$)$ Goods purchased for $8,000$ from CC Ltd are included in DD Ltd$\text{'}$s inventory at $31$

December $2009.$ CC Ltd had invoiced these goods to DD Ltd at cost plus $60\%.$

Required:

Prepare a consolidated statement of financial position as at $31$ December $2009,$ assuming

that non$-$controlling interests at the date of acquisition are not measured at fair value.