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XRX-1 Please do not copy other answers. This is a different question. If copied from other answers I will downvote and report your account .

Q1.

Q2.

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Q1 Alpha, a parent with one subsidiary, Beta, is preparing the consolidated statement of financial position as at 30 September 20X5. The following exhibits, available on the left-hand side of the screen, provide information relevant to the question: 1. Financial statement extracts - statements of financial position (SOFP) of Alpha and Beta at 30 September 20X5. 2. Alpha's investment in Beta - details of Alpha's investment in Beta which are relevant to the question. 3. Intra-group trading - details of intra-group trading. 4. Impairment review - details of Alpha's impairment review of the investment in Beta including goodwill. 5. Retirement plan - details of Alpha's defined benefit retirement plan. This information should be used to answer the question requirement within the response option provided. Ainh! 5000 S'000 Assets Non.current assets Procerty, plant and equipment Exho investments in construments Einband 670 000 WO 30 OG Current assets Inventores Ehit radece Cash and cash ouivalents 2.000 80 000 55.009 SOM 2000 Total assets 210.400 Equity and liabilities Share capital (31 shares Retained AS other components olety 100.000 150,000 ARAMI 270.000 30.000 39.000 45.000 2100 Non-current liabilities Long-tamborrowings Deferred to Pension Total non-current liabilities 00.000 20.000 16000 18.00 so! an Current liabilities Trade and other Sumate Total current abilities 70.000 50,009 200.000 Total liabilities 280.000 TOLI currenciales VIDIO 100.000 Total liabilities Total equity and liabilities 260.00 420.000 210.000 On 1 October 20X4, Alpha acquired 60 million shares in Beta and gained control of Beta. Alpha made a cash payment of $175 million to the former shareholders of Beta on 1 October 20X4. Alpha incurred acquisition costs of $5 million and has presented the total costs of $180 million as investments in equity instruments. A condition of the purchase agreement was that Alpha would make a further cash payment to the former shareholders of Beta on 30 September 20X7. The amount of this further cash payment depends on the performance of Beta in the three-year period from 1 October 20X4 to 30 September 20X7. On 1 October 20X4, the fair value of this conditional payment was $60 million. Because the performance of Beta in the year ended 30 September 20X5 was below expectations, the fair value of the conditional payment had reduced to $50 million by 30 September 2005. Alpha has not made any entries in its own financial statements in respect of this conditional payment. On 1 October 20X4, Beta had retained earnings of $80 million and other components of equity of $45 million. On 1 October 20X4, the fair values of Beta's identifiable assets and liabilities were the same as their carrying amounts in the individual financial statements of Beta with the exception of property, plant and equipment which had a carrying amount of $150 million and a fair value of $205 million. On 1 October 20X4, the useful life of this property, plant and equipment was five years. The fair value adjustments should be regarded as temporary differences for the purposes of computing deferred tax. The relevant rate of income tax to use for this purpose is 20%. The directors of Alpha measured the non-controlling interest in Beta at its fair value at the date of acquisition. On 1 October 20X4, the fair value of the non-controlling interest was $65 million. Since 1 October 20X4, Beta has been supplying Alpha with a product. Beta earns a margin of 25% on this product. On 30 September 20X5, the inventories of Alpha included $20 million in respect of the product. There were no outstanding intra-group balances at 30 September 20X5. Alpha undertook an impairment review of its investment in Beta at 30 September 20X5. Beta comprises three cash generating units for impairment review purposes. Relevant details are as follows: Cash generating Percentage of net Recoverable amount of CGU unit (CGU) assets and goodwill at 30 September 20X5 % A 40 100,000 B 35 110,000 25 80,000 $'000 Alnha has established a defined benefit retirement plan for its current and former emplovees. Alpha has established a defined benefit retirement plan for its current and former employees. Beta has not established such a plan. The statement of financial position of Alpha in Exhibit 1 shows the net defined benefit pension liability at 30 September 20X4. During the year ended 30 September 20X5, Alpha made a payment of $30 million to the plan. When making this payment, Alpha debited retained earnings and credited cash. This is the only accounting entry which has been made in relation to the plan for the year to 30 September 20X5. The current service cost for the year ended 30 September 20X5 was $25 million. The net interest cost on the pension liability for the vear ended 30 September 20X5 was $2.5 million Using the information in Exhibits 1 - 5, prepare the consolidated statement of financial position of Alpha at 30 September 20X5. Note: Unless specifically referred to in the exhibits you should ignore deferred tax. September 2018. Note 2 - Alpha's investment in Gamma On 1 October 2015, Alpha acquired 36 million shares in Gamma by means of a cash payment of $145 million. Gamma's issued share capital at that date was 120 million shares. On 1 October 2015 and 30 September 2018, the individual financial statements of Gamma showed retained earnings of $45 million and $65 million respectively. Since 1 October 2015, no other investor has owned more than 2% of the shares of Gamma. Note 3 Alpha's investment in Delta On 1 October 2012, Alpha issued 80 million of its own shares in exchange for an 80% shareholding in Delta. Delta has an issued share capital of 100 million shares. The fair value of an equity share in Alpha on that date was $1.40. The fair values of the net assets of Delta at 1 October 2012 were the same as their carrying amounts. On 1 October 2012, the directors of Alpha initially measured the non-controlling interest in Delta at its fair value on that date. On 1 October 2012, the fair value of an equity share in Delta (which can be used to measure the fair value of the non-controlling interest) was $1.10. The individual financial statements of Delta showed net assets at the following amounts: - $110 million on 1 October 2012. - $170 million on 30 September 2017. In the year ended 30 September 2018, the individual financial statements of Delta showed a profit of $24 million. On 31 March 2018, Delta paid a dividend of $9 million. On 30 June 2018, Alpha disposed of its shareholding in Delta for cash proceeds of $180 million. The individual financial statements of Alpha recognised the correct profit on disposal of its shareholding in Delta. No impairment of the goodwill on acquisition of Delta had been necessary between 1 October 2012 and 30 June 2018. Note 4 - Intra-group trading Alpha supplies a