q1

Attempt all the questions. Read all the requirements carefully. Q.NO.1: H bought 90% of the equity share capital of S, two years ago on January 20x2 when the retained earnings of S stood at $5,000. Statements of financial position at the year end of 31 December 20x3 areas follows: H S $000 $000 $000 $000 Non-current assets: Property, plant & equipment 100 Investment in S at cost 34 30 134 30 Current assets: Inventory Receivables Bank 90 110 20 25 5 10 --- 210 50 344 80 Equity Share capital Retained earnings 5 15 159 31 36 Non-current liabilities Current liabilities 174 120 50 28 16 344 80 S transferred goods to H at a transfer price of $18,000 at amark-up of 50%. Two-thirds remained in inventory at the year end. Thesurent account in Hand S stood at $22,000 on that day. The H group uses the fair value method to value the non-controlliginterest. The fair value of the non-controlling interest at acquisitionwas $4,000 Prepare the consolidated statement of financial position at 31/12/X3