Question
(a) The statement of financial position of three companies as at 31 December 2017 showed the following position. Accra Ltd GHC Tema Ltd GHC Kumasi
(a) The statement of financial position of three companies as at 31 December 2017 showed the following position.
Accra Ltd GHC | Tema Ltd GHC | Kumasi Ltd GHC | |
Non-Current Assets | |||
Property Plant & Equipment | 420,000 | 410,000 | 400,000 |
Investment | 480,000 | 150,000 | - |
900,000 | 560,000 | 400,000 | |
Current asset | |||
Inventory | 150,000 | 120,000 | 100,000 |
Trade receivables | 200,000 | 150,000 | 130,000 |
Bank balances | 100,000 | 50,000 | 20,000 |
450,000 | 320,000 | 250,000 | |
Total Asset | 1,350,000 | 880,000 | 650,000 |
Equity and Liability | |||
Stated Capital | |||
Ordinary Shares (atGHC1 each) | 500,000 | 200,000 | 100,000 |
Preference Shares (at GHC1 each) | 200,000 | 150.000 | 20,000 |
Income Surplus | 150,000 | 100,000 | 80,000 |
Capital Surplus | 230,000 | 80,000 | 50,000 |
1,080,000 | 530,000 | 250,000 | |
Non Current Liabilities | |||
30% Bonds | 100,000 | 120,000 | 50,000 |
Current Liability | |||
Trade Payable | 100,000 | 150,000 | 300,000 |
Income Tax | 70,000 | 80,000 | 50,000 |
Total Equity and Liability | 1,350,000 | 880,000 | 650,000 |
Additional information
- On 1 April 2014, Accra purchased GH30,000 loan notes in Tema at par. Accra Ltd acquired 160,000 shares in Tema Ltd at GHC2 per share on 1st January 2014, when the income surplus and capital surplus balances of Tema Ltd were GHC60,000 and GHC40,000 respectively. The fair value of non-controlling interest of Tema Ltd at the date of acquisition was GHC125,000.
- Accra Ltd acquired 60,000 shares in Kumasi Ltd on 31st December 2014 for GHC130,000, when the income surplus balance was GHC30,000. There has been no movement in the capital surplus accounts since acquisition.
- On 31 December 2014 Tema Ltd acquired 20,000 shares in Kumasi Ltd for GHC50,000.
- The fair value of non-controlling interest of Kumasi Ltd on 31 December 2014 was GHC85,000.
- During the year Accra Ltd sold a motor vehicle to Tema Ltd costing GHC20,000 of which Accra Ltd made a profit of 25% on cost. The policy of the group is to depreciate its motor vehicles at 20% on cost.
Required:
Prepare the consolidated statement of financial position as at 31 December 2017 for Accra Ltd and its subsidiaries in accordance with the relevant IFRS. (20marks)
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