(20) QUESTION 4 (complex groups) The following are the abridged trial balances of A Limited, B Limited and December 2019: Limited at 31 ISS 100 000 CREDITS Share capital -100 000 ordinary shares -80 000 ordinary shares -30 000 ordinary shares Retained earnings Profit for the period 80 000 200 000 345 000 645 000 150 000 220 000 450 000 00 000 110 000 95 000 265 000 DEBITS Property plant and Equipment Investment in equity instruments: 266 S00 2 84 000 136 500 Page 13 of 19 Investment in B. Lad Investment in Cld Trade and other receivables Income tax expense Dividends paid 1100XX) 100 000 35 000 103 50) 30 000 645 000 60 000 66 000 40 (X) 65XX) 28 SOX 35.000 265 OKNO 450 000 Additional information Note 1. A Limited purchased 60 000 shares in B Limited on 1 January 2016, when B Limited's retained earnings amounted to S60 000. On January 2017 A Limited acquired 27 000 shares in C Limited, when the retained earnings of C Limited amounted to $40 000. On both acquisition dates, A Limited acquired control over the respective companies and the fair values of the identifiable assets, liabilities and contingent liabilities were considered to be equal to the carrying amounts of these items Note 2. Each share carries I vote. Note 3. The group uses the partial goodwill method to recognise goodwill. (The non-controlling interests are measured at their proportionate interest in the net identifiable assets of the acquiree) Goodwill was not considered to be impaired at year-end Note 4. The fair values of investments in equity instruments are equal to the cost price thereof. The equity investments are measured at fair value through other comprehensive income (FVTOCT). Required: Prepare the consolidated annual financial statements of the A Limited Group for the year ended 31 December 2019. Your answer must comply with the requirements of International Financial Reporting Standards. No notes are required. Ignore comparative figures (20) (20) QUESTION 4 (complex groups) The following are the abridged trial balances of A Limited, B Limited and December 2019: Limited at 31 ISS 100 000 CREDITS Share capital -100 000 ordinary shares -80 000 ordinary shares -30 000 ordinary shares Retained earnings Profit for the period 80 000 200 000 345 000 645 000 150 000 220 000 450 000 00 000 110 000 95 000 265 000 DEBITS Property plant and Equipment Investment in equity instruments: 266 S00 2 84 000 136 500 Page 13 of 19 Investment in B. Lad Investment in Cld Trade and other receivables Income tax expense Dividends paid 1100XX) 100 000 35 000 103 50) 30 000 645 000 60 000 66 000 40 (X) 65XX) 28 SOX 35.000 265 OKNO 450 000 Additional information Note 1. A Limited purchased 60 000 shares in B Limited on 1 January 2016, when B Limited's retained earnings amounted to S60 000. On January 2017 A Limited acquired 27 000 shares in C Limited, when the retained earnings of C Limited amounted to $40 000. On both acquisition dates, A Limited acquired control over the respective companies and the fair values of the identifiable assets, liabilities and contingent liabilities were considered to be equal to the carrying amounts of these items Note 2. Each share carries I vote. Note 3. The group uses the partial goodwill method to recognise goodwill. (The non-controlling interests are measured at their proportionate interest in the net identifiable assets of the acquiree) Goodwill was not considered to be impaired at year-end Note 4. The fair values of investments in equity instruments are equal to the cost price thereof. The equity investments are measured at fair value through other comprehensive income (FVTOCT). Required: Prepare the consolidated annual financial statements of the A Limited Group for the year ended 31 December 2019. Your answer must comply with the requirements of International Financial Reporting Standards. No notes are required. Ignore comparative figures (20)