Assume that on 1 January 2019, Figo Plc acquired 65% of the issued shares of Stitch Ltd for 5,400. At that date, Stitch Ltd has retained earnings of 5,200.

Extracts of the statement of financial position for the two companies at 31 December 2019 are as follows:

Figo

Stitch

ASSETS

Investment in Stitch ltd

5,400

-

Non-current assets

12,576

7,490

Current assets

5,136

2,140

Total assets

23,112

9,630

Equity

Share capital 1 ordinary shares

5,000

2,000

Retained earnings

13,840

5,850

Total equity

18,840

7,850

Non-current liabilities

2,880

1,200

Current liabilities

1,392

580

Total liabilities

4,272

1,780

Total equity and liabilities

23,112

9,630