Question
Assignment Scenario 1 Green Co and Blue Co The following are the draft statement of the Financial Position of Green Co and its subsidiary Blue
Assignment Scenario 1
Green Co and Blue Co
The following are the draft statement of the Financial Position of Green Co and its subsidiary Blue Co as of 31st December 2020 are given below:
Green Co | Blue Co | |
Assets | RO | RO |
Non current assets | ||
Property, Plant and Machinery | 856,500 | 115,000 |
Investments: Blue Co | 225000 | |
Current assets | ||
Inventories | 330,900 | 113,400 |
Trade and other receivables | 435,600 | 211,050 |
Cash and cash equivalents | 90,000 | 113,175 |
Total Assets | 1,938,000 | 552,625 |
Equity and liabilities | ||
Share capital: Ordinary RO1 shares | 1,000,000 | 225000 |
Share premium | 125,000 | 28,125 |
Retained earnings | 168,000 | 70,000 |
Non- current liabilities: | ||
Bank Loan | 127,500 | 90,000 |
Current liabilities | ||
Trade and other payables | 517,500 | 139,500 |
Total Equity & Liabilities | 1,938,000 | 552,625 |
Additional information:
- Green Co acquired 157,500 shares (70%) in Blue Co on 1st Jan 2020 for a cost of RO 225,000 when the retained earnings of Blue Co were RO 15,000. The fair value of the non-controlling interest in Blue Co at the date of acquisition was RO 60,000.
- At the date of acquisition, the fair value of the net assets of Blue Co approximated their carrying amounts, except for a plot of land owned by Blue Co. This land was held in the financial statements of Blue Co at its cost of RO 25,000 but was estimated to have a fair value of RO35,000. This land is still owned by Blue Co on 31st December 2020.
- On 31st December 2020 Green Co sold goods to Blue Co for RO 12,000 at a margin of 20%. 25% of these goods were still unsold by Blue Co at the end of the year.
- On 31st December 2020, Green Cos trade receivables include RO 7,500 due from Blue Co, and Blue Cos trade payable include RO 7,500 due to Green Co.
Question 1
A. You are required to:
Prepare consolidated statement of financial position as of 31st December 2020 of Green Co.
(Provide Reference to IFRS wherever applicable and relevant workings)
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