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On 31.1.20X7, Parents Ltd acquired the following shares in Daughter Ltd.: $ 75,000 Ordinary shares - cost 93,000 15,000 6% Preference shares - cost 16,000 109,000 At the date of acquisition, the retained profits of Daughter Ltd. amounted to $11,000. The summarized statements of financial position of the two companies at 31.12.20X8 were as follows: Parents Daughter 31.12.20x8 31.12.20x8 S S Non Current assets 431,100 219,350 Investments 109,000 Inventory 143,070 71, 120 Receivables 89,200 36,230 Cash at Bank 19,450 17,150 Current A/c with Parent 150.000 791,820 493, 850 Ordinary Shares 350,000 100,000 6% Preference Shares 60,000 Retained Profits 348,420 282,700 Current Liabilities 93,400 51,150 791 820 493, 850 The following information is also relevant: (1) Daughter Ltd. had 100,000 issued ordinary shares and 60,000 issued preference shares as at 31.12.20X7. (2) During the year, Parents Ltd sold goods whose invoice value was $24,000 to Daughter Ltd. These goods were invoiced at cost plus 25%, and one-quarter were still in Daughter Ltd.'s inventory at the year end. (3) Parents Lid recognised a goodwill impairment in ordinary capital of $133 in Daughter Ltd. at 31 December 20X8. (4) On 24th December 20X8, Parents Ltd sent a cheque of $150,000 to Daughter Ltd. to settle the current account, and this cheque was received by Daughter Ltd. on 3"d January 20X9.20X8. (4) On 24th December 20X8, Parents Ltd sent a cheque of $150,000 to Daughter Ltd. to settle the current account, and this cheque was received by Daughter Ltd. on 3"d January 20X9. (5) Included as year-end inventory, Parents Ltd are goods purchased from Daughter Ltd. amounting to $3,760. Daughter Ltd. used to invoice sales at cost plus 25%. (6) All non-current assets have a useful life of 10 years. (7) On 31: December 20X7, just before the acquisition finalized, Daughter Ltd. paid a dividend of 10 cents per share in respect of 20X7. The dividend has included in the retained profit of $11,000. (8) Daughter Ltd. calculated depreciation at the rate of 10% on the cost of plant and machinery. No plant and machinery was purchased or disposed of by Daughter Ltd. during 20X8. For the purpose of consolidation, Daughter Ltd.'s plant and machinery, which cost $460,000 and has an accumulated depreciation as of 31 st December 20X8 of $240,650, had a fair value of $269,350 on 31" December 20x7 with a further useful life of 10 years. All other assets and liabilities of Daughter Ltd. were recorded at amounts equal to fair value. (9) On 31st December 20X8, Parents Ltd's PPE costing $500,000 and has an accumulated depreciation as of 31 st December 20X8 of $68,900, had a revaluation giving rise to a fair value of $450,000 with a further useful life of 10 years. REQUIRED: What is the reported Non-Controlling Interest NCI in the Consolidated Statement of Financial Position of Parent and its subsidiary as at 31 December 20X8? HINT: . Goodwill at acquisition date is $13,000 . As at 31st December 20X8 reported o Goodwill $12,869 o Total assets $1,210,085 o Accumulated Depreciation $241,050 . NCI $XXX,604
