international standards

700 14 Qi QUESTION 1 140 MARKS The following are the Statements of Financial Position of Achilles Limited and Troy Limited, as at the 31 December 2021. The companies are major players in the automotive industry. Achilles Limited acquired 80% of the shares in Troy Limited on January 1, 2018 when the retained earnings balance was $264,000. Troy Limited's acquisition consisted of a cash payment of $2.400.000 and a share exchange of 3 shares in Achilles Limited for every 4 shares acquired in Troy Limited. The market price for an Achilles Limited share at that date was 51.80 Only the cash payment related to the acquisition of Troy Limited have been recorded. S 000 7,20 4.800 Statement of Financial Position as at 31 December 2021 Achilles Limited Troy Limited SOO SONO S000 Non-Current Assets Property Equipment 10,700 180 Le Depreciation 2.400 8.300 800 Moon Vehicles 2300 11200 La Depreciation 210 2070 17,570 100 00 8,300 1.080 Less Depreciation Motor Vehicles Lexs Depreciation 2.400 2300 230 800 1,200 400 2070 17.570 800 6,680 2400 Investments Troy Limited Current Assets Inventory Accounts receivable Bank & cash 620 12.40 900 450 740 80 4.990 22.560 1440 8.120 EQUITY & LIABILITES SI Ordinary Shares 15.000 5.000 Retind caring 300 1.170 1500 1500 Non Current Limites Debent Current Liabilities Trade Pasables Taxation 780 NO 304 00 50 Additional Information: 1 At the date of the acquisition Achilles Limited conducted a fair value exercise which revealed that property owned by Troy Limited was $800.000 below the carrying value. However, to date no adjustments were made At December 31 2001. goodwill was impaired by $2,000,000 During the yeae Achilles Limited sold goods to Troy Limited for 5150,000 after charging mk-up of SON AL 31 December 2021. On of the goods remained unsold. 2 1 Troy's current account balance with Achilles on the 3 December 2021 was $28.00%), which did not with Adhesequivalent civables due to a payment of $10,000 made by Troy Limited on the 27 of December 2001 which was not received by Achilles Limited 3 March 2022 5 Non Controlling In Troy Limited should be valuedio por suret qui ale 6. On the 2001 Toy Limited transformed into Achilles Lamode of 50.000 tier adding map of 25 Achilles Limited directed that per mon co con monthly Required: 1. Prepare the Conte Balance Sheet for the Achilles Les December 3021 mars 2. Explain when it is confidere Lack