Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please answer these questions below a) What was the goodwill arising on acquisition? (4 marks) b) At what amount should the non-controlling interest and group
Please answer these questions below
a) What was the goodwill arising on acquisition? (4 marks)
b) At what amount should the non-controlling interest and group retained earnings appear in the consolidated statement of financial position at 31 December 20X8? (4 marks)
c) Prepare the consolidated statement of financial position of the P Group (5 marks).
3. P acquired 70% of the shares in S on 1 January 2008 when Shad retained earnings of $14,000. The market price of S's shares just before the date of acquisition was $1.50. P values NCI at fair value. Goodwill is not impaired. During the year to 31 December 20X9, S Co sold goods to P Co for $5,000, the profit to S Co being 20% of selling price. At the end of the reporting period, half of these goods remained unsold in the inventories of P Co. I The statements of financial position of P and Sat 31 December 20X8 were as follows: 1 P S $ $ Assets Non-current assets Property, plant and equipment 71,000 42,000 Shares in S 58.000 129,000 42,000 Current assets 51.000 32.000 Total Assets 180.000 74.000 Share capital - $1 shares 100.000 40,000 Retained earnings 64.000 24.000 164,000 64,000 Current liabilities 16.000 10.000 180.000 74.000 Total equity and liabilitiesStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started