Example of Consolidated Statement of Financial Position

Parent Subsidiary

Non-current assets

Tangible assets $1,000 $600

Investment in Subsidiary $1,200

Net current assets $500 $600

Totals 2,700 1,200

Issued capital $100 $50

Retained earnings $2,600 $1,150

$2,700 $1,200

Additional information:

1. Parent bought 80% of subsidiary two years ago.

2. Subsidiarys reserves were $150 at the date of acquisition.

3. Goodwill has been impaired by $200 since the date of acquisition.

4. Non-controlling interest is valued at the proportionate share of the subsidiarys identifiable net assets; it is not credited with its share of goodwill.

Required: Prepare the consolidated statement of financial position.