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Illustration 1 Solve only if you know This example runs through the chapter and is used to illustrate the basic steps involved in consolidating an
Illustration 1 Solve only if you know
This example runs through the chapter and is used to illustrate the basic steps involved in consolidating an overseas subsidiary. Dragon bought 90% of the ordinary shares of Tattoo for DN180 million on 31 December 200. The retained earnings of Tattoo at this date were DN65 million. The fair value of the non-controlling interest at the acquisition date was DN14 million. The financial statements of Dragon and Tattoo for the year ended 31 December 20X1 are presented below: Statements of profit or loss for year ended 31 December 20X1 Statements of financial position as at 31 December 201 There has been no intra-group trading. Goodwill arising on the acquisition of Tattoo is not impaired. The presentation currency of the consolidated financial statements is the dollar ($). Exchanqe rates are as follows: Required: For inclusion in the consolidated statement of profit or loss and other comprehensive income for the year ended 31 December 20X1, calculate: - Revenue - Costs For inclusion in the consolidated statement of financial position as at 31 December 20X1, calculate: - Property, plant and equipment - Investments - Current assets - Share capital - LiabilitiesStep by Step Solution
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