PLZ PLZ HELP ASAP

Question 1

Below are the statements of financial position for Chow Plc, Shiba Limited, Husky Limited and Maltese Limited for the year ended 30 April 2021.

Notes to the above accounts

Share Capital

• The ordinary share capital of Chow Plc consists of shares with a par value of 1.
• The ordinary share capitals of Shiba Limited and Husky Limited consists of shares with a par value of 20 pence.
• The ordinary share capital of Maltese Limited consists of shares with a par value of 40 pence.
• Shiba Limited
• Chow Plc purchased 400,000 ordinary shares in Shiba Limited on 1 May 2016 for 300,000. At the date of acquisition, the retained earnings of Shiba Limited stood at 63,000.
• On 1 May 2016, the ordinary shares of Shiba Limited were valued at 0.70 each.
• It was agreed that the fair values of Shiba Limiteds assets and liabilities at the date of acquisition were equal to book values.
• On 28 April 2021, Shiba Limited dispatched goods to Chow Plc which had originally cost Shiba Limited 18,000. Shiba Limited implements a profit margin of 10% on all sales. On 30 April 2021, Chow Plc had still not received this inventory. At the year end date, Shiba Limiteds records showed a receivable due from Chow Plc of 32,000 which was different to the equivalent payable in Chow Plcs records due to the goods in transit.
• Shiba Limited declared a final dividend of 150,000 on 28 April 2021. Chow Plc has taken credit for its share of the dividends from Shiba Limited in the statement of financial position above. All dividends receivable by Chow Plc are included in Trade and Other Receivables. All dividends payable are included in Trade and Other Payables
• Husky Limited
• Chow Plc purchased 300,000 ordinary shares in Husky Limited on 1 January 2021 in a share exchange of one share in Chow Plc for four shares in Husky Limited. This share issue has not yet been recorded by Chow Plc.
• On 1 January 2021, Chow Plc shares had a market value of 3.20 each.
• On 1 May 2020, the retained earnings of Husky Limited stood at 76,000.
• On 1 January 2021, the ordinary shares of Husky Limited were valued at 0.50 each.
• At the date of acquisition, the fair value of Husky Limiteds property, plant and equipment was agreed to be 30,000 higher than book value. 60% of this fair value increase relates to buildings. This fair value adjustment has not been included in Husky Limiteds books of account and the buildings had an average remaining useful life of 12 years at the date of acquisition.
• At the date of acquisition, Chow Plc valued Husky Limiteds customer relationships as a customer base intangible asset at fair value of 12,000. Chow Plc has not accounted for this asset. Trading relationships with Husky Limiteds customers last on average for four years.
• In March 2021, Husky Limited sold 36,000 worth of goods to Chow Plc. Husky Limited applies a consistent profit mark up of 20% for all sales. On 30 April 2021, Chow Plc has 25% of these goods still within their inventories.
• On 28 April 2021, Chow Plc sent Husky Limited a cheque for 40,000 to clear the year end inter-company balance between the two companies. This cheque was not received by Husky Limited until 4 May 2021.
• Husky Limited declared a final divided of 20,000 on 26 April 2021. Chow Plc has not taken credit for its share of the dividends from Husky Limited in the statement of financial position above
• Maltese Limited
• Chow Plc paid 60,000 to acquire 80,000 shares in Maltese Limited on 1 July 2020.
• On 1 May 2020, the retained earnings of Maltese Limited stood at 20,000.
• On 1 July 2020, the market value of each ordinary share in Maltese Limited was 0.70.
• In January 2021, Maltese Limited sold 60,000 worth of goods to Chow Plc. These goods had originally cost Maltese Limited 45,000. At the year end date, Chow Plc still held all these goods in its inventory.
• Maltese Limited did not declare a final dividend
• Goodwill
• Positive goodwill is carried at cost and reviewed annually for impairment.
• Negative goodwill is credited directly to retained earnings.
• An impairment review of goodwill has been carried out at the year end and had concluded that Shiba Limiteds goodwill had been impaired by 18,000. There was no impairment in the goodwill of Husky Limited.
• An impairment loss of 2,000 is to be recognised on the investment in Maltese Limited.
• It is group policy to value non controlling interests at their fair value

• YOU ARE REQUIRED TO:

  Prepare the group Statement of Financial Position for the year ended 30 April 2021.

Chow '000 Shiba '000 Husky '000 Maltese '000 380 150 70 62 Non-current assets Property, plant and equipment Intangible assets Investments 60 10 8 12 460 900 160 78 74 68 Current assets Inventory Trade and other receivables Bank 768 550 234 176 112 78 30 84 33 20 1,402 410 223 118 Total assets 2,302 570 301 192 800 100 80 80 Equity Equity shares Share premium Retained earnings 4 32 556 123 97 32 1,388 227 177 112 Non-current liabilities Borrowings Deferred tax 200 50 20 10 200 88 30 8 28 Current liabilities Bank Trade and other payables 514 177 74 62 514 205 74 62 343 124 80 Total liabilities Total equity and liabilities 914 2,302 570 301 192 Chow '000 Shiba '000 Husky '000 Maltese '000 380 150 70 62 Non-current assets Property, plant and equipment Intangible assets Investments 60 10 8 12 460 900 160 78 74 68 Current assets Inventory Trade and other receivables Bank 768 550 234 176 112 78 30 84 33 20 1,402 410 223 118 Total assets 2,302 570 301 192 800 100 80 80 Equity Equity shares Share premium Retained earnings 4 32 556 123 97 32 1,388 227 177 112 Non-current liabilities Borrowings Deferred tax 200 50 20 10 200 88 30 8 28 Current liabilities Bank Trade and other payables 514 177 74 62 514 205 74 62 343 124 80 Total liabilities Total equity and liabilities 914 2,302 570 301 192