Jing provides you with the following information:

Consolidation accounting policies The consolidated financial statements incorporate the financial statements of the subsidiary (Sung Ltd) of Park Ltd (Parent) as at the reporting date. Park Ltd and its subsidiary together are referred to in these financial statements as the Group or the consolidated entity.

The subsidiary is included in the consolidated financial statements using the acquisition method of consolidation. It is fully consolidated from the date on which control is transferred to the Parent.

The Group recognises non-controlling interest at its proportionate share of subsidiary net identifiable assets.

PLEASE CONSIDER THE SUBSIDIARY SUNG not Smashed Ltd

Required:

Prepare the consolidated group financial statements for Park Ltd and Sung Ltd as at 31 December 2019, using the Stage 1 tab on the Excel template provided. Use only the information provided above.

There is clearly mentioned comment above PLEASE CONSIDER THE SUBSIDIARY SUNG not Smashed Ltd

What extra information is required as everything is given for analysis?

The Subsidiary, Sung Ltd On 31 December 2017, Park Ltd acquired 75% of the shares in Smashed Limited. On that date, the equity of Sung Ltd comprised: Share capital $360,000 Retained earnings 48,000 At 31 December 2017, all the identifiable assets and liabilities of Sung Ltd were recorded at amounts equal to their fair values except for the following. Carrying amount Fair value Plant $240,000 $264,000 Equipment 180,000 240,000 There has been no change to assessed value of these assets since acquisition. Goodwill impairment At the most recent balance date (31 December 2019), the returns from Sung Ltd were not as high as expected. The directors of Park Ltd considered that acquired goodwill had been impaired by $20,000. Tax and Deferred Tax Assume a tax rate of 30% wherever relevant (i.e., for both Stage 1 and Stage 2). Breakdown of Cost of Sales figures supplied below for 31 December 2019 Park Ltd Sung Ltd Opening inventory 600.000 550.000 Purchases 1,700,000 1,200,000 Closing inventory 425,000 358,000 Cost of sales 1.875,000 1,392.000 Financial statements Income statement for year end 31 December & Balance sheet as at 31 December 2019 Park Ltd Sales 2,730,000 Cost of sales 1,875,000 Gross profit 855,000 Operating expenses (incl. Interest, Depreciation & Impairment) 675,000 Other income (incl. Dividends, Interest & Gains) 180,000 Operating profit before tax 360,000 Income tax 90,000 Net Profit 270,000 Sung Ltd 1,872.000 1,392,000 480,000 388,800 196,800 288,000 96,000 192,000 Opening Retained earnings Dividends paid Closing retained earnings 300,000 570,000 60,000 510,000 144,000 336,000 36,000 300,000 Share capital Total equity 1,200,000 1,710,000 360,000 660,000 Accounts Payable Deferred tax Other non-current liabilities Total liabilities 90,000 36,000 249,000 375,000 120,000 45,000 198,000 363,000 Total liabilities and equity 2,085,000 1,023,000 Cash Accounts Receivable Inventory Current assets 95,200 121,800 240,000 457,000 15,000 18,000 90,000 123,000 Investment in Sung Ltd (at Cost) Plant (net) Equipment (net) Other non-current assets Non-current assets 500,000 600,000 360,000 168,000 1,628,000 500,000 300,000 100,000 900,000 Total assets 2,085,000 1,023,000 Consolidated Sales Beginning inventory Purchases Ending inventory Cost of sales Gross profit Operating expenses (incl. Interest, Depn & Impairment) Other income (incl. Dividends, Interest & Gains) Operating profit before tax Income Tax Net Profit Non controlling interest in profits Opening Retained earnings Dividends paid Closing retained earnings Share capital Non-controlling interest Total equity Accounts Payable Deferred tax Other non-current liabilities Total liabilities Total liabilities and equity Cash Accounts Receivable Inventory Current assets Investment in Sung (at Cost) Plant (net) Equipment (net) Goodwill (net) Other non-current assets (net) Non-current assets Total assets The Subsidiary, Sung Ltd On 31 December 2017, Park Ltd acquired 75% of the shares in Smashed Limited. On that date, the equity of Sung Ltd comprised: Share capital $360,000 Retained earnings 48,000 At 31 December 2017, all the identifiable assets and liabilities of Sung Ltd were recorded at amounts equal to their fair values except for the following. Carrying amount Fair value Plant $240,000 $264,000 Equipment 180,000 240,000 There has been no change to assessed value of these assets since acquisition. Goodwill impairment At the most recent balance date (31 December 2019), the returns from Sung Ltd were not as high as expected. The directors of Park Ltd considered that acquired goodwill had been impaired by $20,000. Tax and Deferred Tax Assume a tax rate of 30% wherever relevant (i.e., for both Stage 1 and Stage 2). Breakdown of Cost of Sales figures supplied below for 31 December 2019 Park Ltd Sung Ltd Opening inventory 600.000 550.000 Purchases 1,700,000 1,200,000 Closing inventory 425,000 358,000 Cost of sales 1.875,000 1,392.000 Financial statements Income statement for year end 31 December & Balance sheet as at 31 December 2019 Park Ltd Sales 2,730,000 Cost of sales 1,875,000 Gross profit 855,000 Operating expenses (incl. Interest, Depreciation & Impairment) 675,000 Other income (incl. Dividends, Interest & Gains) 180,000 Operating profit before tax 360,000 Income tax 90,000 Net Profit 270,000 Sung Ltd 1,872.000 1,392,000 480,000 388,800 196,800 288,000 96,000 192,000 Opening Retained earnings Dividends paid Closing retained earnings 300,000 570,000 60,000 510,000 144,000 336,000 36,000 300,000 Share capital Total equity 1,200,000 1,710,000 360,000 660,000 Accounts Payable Deferred tax Other non-current liabilities Total liabilities 90,000 36,000 249,000 375,000 120,000 45,000 198,000 363,000 Total liabilities and equity 2,085,000 1,023,000 Cash Accounts Receivable Inventory Current assets 95,200 121,800 240,000 457,000 15,000 18,000 90,000 123,000 Investment in Sung Ltd (at Cost) Plant (net) Equipment (net) Other non-current assets Non-current assets 500,000 600,000 360,000 168,000 1,628,000 500,000 300,000 100,000 900,000 Total assets 2,085,000 1,023,000 Consolidated Sales Beginning inventory Purchases Ending inventory Cost of sales Gross profit Operating expenses (incl. Interest, Depn & Impairment) Other income (incl. Dividends, Interest & Gains) Operating profit before tax Income Tax Net Profit Non controlling interest in profits Opening Retained earnings Dividends paid Closing retained earnings Share capital Non-controlling interest Total equity Accounts Payable Deferred tax Other non-current liabilities Total liabilities Total liabilities and equity Cash Accounts Receivable Inventory Current assets Investment in Sung (at Cost) Plant (net) Equipment (net) Goodwill (net) Other non-current assets (net) Non-current assets Total assets