Question
Paul has owned 80% of the share capital of Saul since Sauls incorporation on 1 January 2012, when the fair value of Sauls shares were
Paul has owned 80% of the share capital of Saul since Sauls incorporation on 1 January 2012, when the fair value of Sauls shares were GH1 each. On 31 December 2014 the summarized Statements of Financial Position of both companies are:
Paul
Saul
GH000
GH000
Non-current assets
300
100
Investments: Shares in Saul
80
-
Current assets
100
80
Total assets
480
180
Equity shares at GHC1 each
200
100
Retained Earnings
230
60
Current liabilities
50
20
Total Equity and Liabilities
480
180
Prepare the Consolidated Statement of Financial Position for the Paul group as at 31 December 2014, assuming goodwill is not impaired.
Paul has owned 80% of the share capital of Saul since Sauls incorporation on 1 January 2012, when the fair value of Sauls shares were GH1 each. On 31 December 2014 the summarized Statements of Financial Position of both companies are:
| Paul | Saul |
| GH000 | GH000 |
Non-current assets | 300 | 100 |
Investments: Shares in Saul | 80 | - |
Current assets | 100 | 80 |
Total assets | 480 | 180 |
Equity shares at GHC1 each | 200 | 100 |
Retained Earnings | 230 | 60 |
Current liabilities | 50 | 20 |
Total Equity and Liabilities | 480 | 180 |
|
|
|
Prepare the Consolidated Statement of Financial Position for the Paul group as at 31 December 2014, assuming goodwill is not impaired.
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