Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Hi there, attached below is a question of which I have cancelled due to some misunderstanding, but I am uploading it again. Need help with
Hi there, attached below is a question of which I have cancelled due to some misunderstanding, but I am uploading it again. Need help with it. thanks
Largey Limited acquired 100 per cent of the shares of Smalley Limited on 1 April 2011 for a consideration of $650 000 representing the fair value of the consideration transferred. The contributed equity and reserves of Smalley Limited at the date of acquisition were: Contributed equity Retained earnings Revaluation surplus $ 300 000 150 000 150 000 600 000 There were no transactions between the entities and all assets were fairly valued at the date of acquisition. The director considered that in the reporting period to 31 March 2012, the value of goodwill had been impaired by $25 000. The financial statement of Largey Limited and Smalley Limited T 31 March 2012 (one year after acquisition) were: Largey Limited ($000) RECONCILIATION OF OPENING AND CLOSING RETAINED EARNINGS Profit after tax Income tax expense Profit for the year Retained earnings - 1 April 2011 Retained earnings - 31 March 2012 Statement of financial position Equity Contributed equity Retained earnings Revaluation surplus Current liabilities Account payable Non-current liabilities Loans Current assets Cash Accounts receivable Non-current assets Smalley Limited ($000) 300 -100 200 400 600 150 -50 100 150 250 1200 600 300 300 250 200 100 100 600 2,800.00 250 1,100.00 100 350 145 155 Land Plant Investment in Smalley Limited 700 200 1000 600 650 2,800.00 1,100.00 Required: Prepare the consolidated statements for Largey Lmited and Smarley Limited at 31 March 2012Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started