- PDF auditing book.pdf DE cafe3752_2014_11_sup.pdf + File C:/Users/Loura%20lmbondi/Downloads/cafe3752_2014_11_sup.pdf os o 2 of 6 Q + IL Page view A Read aloud | Draw Highlight Erase Question 1 40 Marks (72 Minutes) Pluto Ltd purchased 80% of the issued ordinary shares of Saturn Ltd for $94 000 and 60% of the preference shares for $40 000 on 1 January 2012. There were no preference dividends in arrears on that date and the owners' equity of Saturn Ltd then consisted of the following: Share capital: Ordinary shares (100 000 shares) $100 000 Share capital: 7% Preference (60 000 shares) $60 000 Retained earnings $22 000 The preference shareholders have a preferential right to their dividend payment and will receive a proportionate share of the net assets available for distribution upon liquidation of the acquire. The fair value of the preference shares at acquisition date is $26 000. Pluto Ltd classified the equity investment in Saturn Ltd under IFRS 9 in its separate financial statements and recognized fair value adjustments in a mark-to-market reserve. The fair values of Pluto Ltd's investment in Saturn Ltd at 31 December 2014 were as follows: Investment in ordinary shares $104 000 Investment in preference shares $46 000 Pluto Ltd elected to measure the non-controlling interests in the acquire at their fair value at the acquisition date. The fair value of the ordinary non-controlling interests at acquisition is $24 000. At the acquisition date, the assets & liabilities of Saturn Ltd were considered to be fairly valued. The financial statements of the two companies for the reporting period 31 December 2015 are as follows: STATEMENTS OF FINANCIAL POSITION AS AT 31 DECEMBER 2015 PLUTO SATURN LTD LTD NS NS ASSETS Property, plant and equipment 157 800 130 000 Investment in Saturn Ltd at fair value: 80 000 ordinary shares 110 000 El 30C Sunny ^ 0 () DENG 3:26 PM 12/10/2021 - PDF auditing book.pdf DE cafe3752_2014_11_sup.pdf + File C:/Users/Loura%20lmbondi/Downloads/cafe3752_2014_11_sup.pdf os o 2 of 6 Q + IL Page view A Read aloud | Draw Highlight Erase Question 1 40 Marks (72 Minutes) Pluto Ltd purchased 80% of the issued ordinary shares of Saturn Ltd for $94 000 and 60% of the preference shares for $40 000 on 1 January 2012. There were no preference dividends in arrears on that date and the owners' equity of Saturn Ltd then consisted of the following: Share capital: Ordinary shares (100 000 shares) $100 000 Share capital: 7% Preference (60 000 shares) $60 000 Retained earnings $22 000 The preference shareholders have a preferential right to their dividend payment and will receive a proportionate share of the net assets available for distribution upon liquidation of the acquire. The fair value of the preference shares at acquisition date is $26 000. Pluto Ltd classified the equity investment in Saturn Ltd under IFRS 9 in its separate financial statements and recognized fair value adjustments in a mark-to-market reserve. The fair values of Pluto Ltd's investment in Saturn Ltd at 31 December 2014 were as follows: Investment in ordinary shares $104 000 Investment in preference shares $46 000 Pluto Ltd elected to measure the non-controlling interests in the acquire at their fair value at the acquisition date. The fair value of the ordinary non-controlling interests at acquisition is $24 000. At the acquisition date, the assets & liabilities of Saturn Ltd were considered to be fairly valued. The financial statements of the two companies for the reporting period 31 December 2015 are as follows: STATEMENTS OF FINANCIAL POSITION AS AT 31 DECEMBER 2015 PLUTO SATURN LTD LTD NS NS ASSETS Property, plant and equipment 157 800 130 000 Investment in Saturn Ltd at fair value: 80 000 ordinary shares 110 000 El 30C Sunny ^ 0 () DENG 3:26 PM 12/10/2021
