Accounting for Business Combinations CONSOLIDATION SUBSEQUENT TO DATE OF ACQUISITION On January 1, 20x1, ABC Co. acquired 80% interest in XYZ, Inc. by issuing 5,000 shares with fair value of P30 per share and par value of P20 per share. The financial statements of ABC Co. and XYZ, Inc. immediately after the acquisition are shown below: Cash Accounts receivable Inventory Investment in subsidiary Equipment Accumulated depreciation Total assets Jan. 1, 20x1 ABC Co. XYZ, Inc. 20,000 10,000 60,000 24,000 80,000 46,000 150,000 400,000 100,000 (40,000) (20,000) 670,000 160,000 12,000 100,000 Accounts payable Bonds payable Share capital Share premium Retained earnings Total liabilities and equity 40,000 60,000 340,000 130,000 100,000 670,000 48,000 160,000 On January 1, 20x1, the fair value of the assets and liabilities of XYZ, Inc. were determined by appraisal, as follows: Carrying Fair Fair value XYZ, Inc. amounts values increment Cash 10,000 10,000 Accounts receivable 24,000 24,000 Inventory 46,000 62,000 16,000 Equipment 100,000 120,000 20,000 Accumulated depreciation (20,000) (24,000) (4,000) Accounts payable (12,000) (12,000) Net assets 148,000 180,000 32,000 The equipment has a remaining useful life as of 4 years from January 1, 20x1. Requirement: Prepare the consolidated statement of financial position as at January 1, 20x1. ABC Co. elects to measure non-controlling interest as its proportionate share in XYZ's net identifiable assets