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Lowestoft plc acquired 70% of the issued share capital of Galgate Ltd on 1 April 2016 for 2,800,000. At that date, Galgate Ltd had issued

Lowestoft plc acquired 70% of the issued share capital of Galgate Ltd on 1 April 2016 for 2,800,000. At that date, Galgate Ltd had issued share capital of 2,000,000 and retained profits were 280,000. Extracts from the statements of financial position for the 2 companies one year later at 31 March 2017 are as follows:

Lowestoft plc Galgate Ltd
'000 '000
Assets:
Investment in Galgate Ltd 2,800
Non-current assets 4,700 1,530
Current assets 2,400 2,090
Total assets 9,900 3,620
Equity:
Share capital 3,000 2,000
Retained profits 5,200 540
Total equity 8,200 2,540
Liabilities:
Non-current liabilities 600 480
Current liabilities 1,100 600
Total liabilities 1,700 1,080
Total equity and liabilities 9,900 3,620

Additional data

  • Included within the current assets of Lowestoft plc and in the current liabilities of Galgate Ltd is an intra-group transaction for 200,000 that took place in early March 2017.
  • Lowestoft plc has decided non-controlling interest will be valued at their proportionate share of net assets

Required:

Prepare the consolidated statement of financial position for Lowestoft plc and its subsidiary undertaking at 31 March 2017.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2017

Assets: '000
Non-current assets
Goodwill
Current assets
Total assets
Equity:
Share capital
Retained profits
Non-controlling interest
Total equity
Liabilities:
Non-current liabilities
Current liabilities
Total liabilities
Total equity and liabilities

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