ABC Ltd acquires all shares of EFG Ltd for total currency unit 300 on Jan 1 2013. The statement of financial positions at Jan 1 2013, Dec 31 2013, and Dec 31 2014 are showing as follows: In TCU Equipment Acc. Depre Investment Cashe Total Assets Jan 1st 20x5 31st Dec. 20X5 ABC EFG ABC D EFG Ltd. Ltd.e Ltd. Ltd.e 0 200 0 200 0 -50 0 -100 300 0 300 0 100 100 100 150 400 250 400 250 31st Dec. 20X6 ABC EFG Ltd. Ltd.e 0 200 0 - 150 300 0 100 200 400 250 e 400 250 Equity 01.01. Equity 31.12. Liabilities Total E&L 400 400 0 400 250 250 0 250 400 400 0 400 250 250 0 250 0 400 0 250 0 0 0 0 0 0 -50 0 Revenues 50 50 Depreciation -50 Profit for the year 0 The equipment of EFG Ltd. was bought on Jan 1 2012. + The expected useful life of the equipment is 4 years. The equipment of EFG Ltd. has a fair value of TCU 180 on Jan 1 2013. The consideration transferred consisted of a cash payment of TCU 300.- Questions 1. Provide the acquisition analysis. Prepare the worksheet entries and the consolidation worksheet as at Jan 1 2013 (initial consolidation). Fill in assets, liabilities, Dr, Cr, and Consolidated. Prepare the worksheet entries and the consolidation worksheet as at Dec 31 2013 (subsequent consolidation). Fill in assets, liabilities, Dr, Cr, and Consolidated. 4. Prepare the worksheet entries and the consolidation worksheet as at Dec. 31 2014 (subsequent consolidation). Fill in assets, liabilities, Dr, Cr, and Consolidated. 2. 3. ABC Ltd acquires all shares of EFG Ltd for total currency unit 300 on Jan 1 2013. The statement of financial positions at Jan 1 2013, Dec 31 2013, and Dec 31 2014 are showing as follows: In TCU Equipment Acc. Depre Investment Cashe Total Assets Jan 1st 20x5 31st Dec. 20X5 ABC EFG ABC D EFG Ltd. Ltd.e Ltd. Ltd.e 0 200 0 200 0 -50 0 -100 300 0 300 0 100 100 100 150 400 250 400 250 31st Dec. 20X6 ABC EFG Ltd. Ltd.e 0 200 0 - 150 300 0 100 200 400 250 e 400 250 Equity 01.01. Equity 31.12. Liabilities Total E&L 400 400 0 400 250 250 0 250 400 400 0 400 250 250 0 250 0 400 0 250 0 0 0 0 0 0 -50 0 Revenues 50 50 Depreciation -50 Profit for the year 0 The equipment of EFG Ltd. was bought on Jan 1 2012. + The expected useful life of the equipment is 4 years. The equipment of EFG Ltd. has a fair value of TCU 180 on Jan 1 2013. The consideration transferred consisted of a cash payment of TCU 300.- Questions 1. Provide the acquisition analysis. Prepare the worksheet entries and the consolidation worksheet as at Jan 1 2013 (initial consolidation). Fill in assets, liabilities, Dr, Cr, and Consolidated. Prepare the worksheet entries and the consolidation worksheet as at Dec 31 2013 (subsequent consolidation). Fill in assets, liabilities, Dr, Cr, and Consolidated. 4. Prepare the worksheet entries and the consolidation worksheet as at Dec. 31 2014 (subsequent consolidation). Fill in assets, liabilities, Dr, Cr, and Consolidated. 2. 3
