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* 1 8 . 6 The statements of financial position of CC Ltd and its two subsidiaries DD Ltd and EE Ltd as at 3
The statements of financial position of CC Ltd and its two subsidiaries DD Ltd and EE Ltd as at December are as follows:
Assets
Noncurrent assets
Property and equipment Investment in DD Ltd Investment in EE Ltd
Current assets
Inventories
Trade receivables
Cash at bank
Equity
Ordinary share capital Revaluation reserve Retained earnings
Liabilities
Current liabilities
Trade payables
The following information is available:
CC Ltd
DD Ltd
EE Ltd
a CC Ltd acquired of the shares of DD Ltd on January when DD Ltd had retained earnings of The fair value of the property and equipment of DD Ltd on that date was more than book value. This valuation has not been reflected in the books of DD Ltd
b CC Ltd acquired of the shares of EE Ltd on January when EE Ltd had a revaluation reserve of and retained earnings of The fair value of EE Ltds 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 since the date of acquisition. The impairment loss for EE Ltd is
e The following intragroup balances exist on December :
DDLtdowesCCLtd EELtdowesCCLtd EELtdowesDDLtd
All of these balances are included in trade receivables and payables.
f Goods purchased for from CC Ltd are included in DD Ltds inventory at December CC Ltd had invoiced these goods to DD Ltd at cost plus
Required:
Prepare a consolidated statement of financial position as at December assuming
that noncontrolling interests at the date of acquisition are not measured at fair value. The statements of financial position of CC Ltd and its two subsidiaries DD Ltd and EE
Ltd as at December are as follows:
CC Ltd
Assets
Noncurrent 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
EE Ltd
The following information is available:
a CC Ltd acquired of the shares of DD Ltd on January when DD Ltd
had retained earnings of The fair value of the property and equipment of
DD Ltd on that date was more than book value. This valuation has not
been reflected in the books of DD Ltd
CHAPTER : GROUPS OF COMPANIES
b CC Ltd acquired of the shares of EE Ltd on January when EE Ltd had
a revaluation reserve of and retained earnings of The fair value
of EE Ltds 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 since the date of acquisition. The impairment loss for EE Ltd is
c The following intragroup balances exist on December :
DD Ltd owes CC Ltd
EE Ltd owes CC Ltd
EE Ltd owes DD Ltd
All of these balances are included in trade receivables and payables.
f Goods purchased for from CC Ltd are included in DD Ltds inventory at
December CC Ltd had invoiced these goods to DD Ltd at cost plus
Required:
Prepare a consolidated statement of financial position as at December assuming
that noncontrolling interests at the date of acquisition are not measured at fair value.
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