QUESTION 1 (35 marks)

On 1st October 2017, Sugar Limited acquired 90% of Salt limited by issuing 100 000 shares at an agreed value of N$1.60 per share and N$ 140 000 in cash.

At that time, the Statement of Financial Position of Salt Limited was as follows:

N$ 000

Property plant and equipment 190

Inventories 70

Trade receivables 30

Cash and cash equivalent 10

Trade payables (40)

Total 260

The Consolidated Statements of Financial Position of Sugar Limited as at 31 December were as follows:

2017 2016

N$000 N$ 000

Non-current assets

Property, plant and equipment 2 500 2 300

Goodwill 66 0

Total 2 566 2 300

Current assets

Inventories 1 450 1 200

Trade receivables 1 370 1 100

Cash and cash equivalents 16 50

Total 2 836 2 350

Total Assets 5 402 4 650

Equity attributable to equity holders of the parent

Share capital (N$ 1 ordinary share) 1 150 1 000

Share premium account 590 500

Retained earnings 1 791 1 530

3 531 3 030

Non- controlling interest 31 0

3 562 3 030

Current liabilities

Trade payables 1 690 1 520

Income tax payable 150 100

1 840 1 620

Total equity and liabilities 5 402 4 650

The Consolidated Statement of Profit or Loss for the year ended 31 December 2017 was as follows:

Revenue 10 000

Cost of sales (7 500)

Gross profit 2 500

Administrative expenses (2 080)

Profit before tax 420

Income tax expense (150)

Profit for the period 270

Attributable to:

Equity holders of the parent 261

Non- controlling interest 9

270

You are also given the following information:

1. All the subsidiary are wholly owned

2. Depreciation charged to the consolidated income statement amounted to

N$210 000

3. There were no disposals of property, plant and equipment during the year

4. No dividend were paid by the parent company

Required

Prepare a Consolidated Statement of Cash flows for the year ended 31 December 2017 under the indirect method in accordance with IAS 7. (35 marks)

On 1st October 2017, Sugar Limited acquired 90% of Salt limited by issuing 100 000 shares at an agreed value of N$1.60 per share and N$ 140 000 in cash. At that time, the Statement of Financial Position of Salt Limited was as follows: N$ 000 Property plant and equipment 190 Inventories 70 Trade receivables 30 Cash and cash equivalent 10 Trade payables (40) 260 The Consolidated Statements of Financial Position of Sugar Limited as at 31 December were as follows: 2017 2016 N$000 N$ 000 Non-current assets Property, plant and equipment 2 500 2 300 Goodwill 66 0 Total 2 566 2 300 Current assets Inventories 1 450 1 200 Trade receivables 1 370 1 100 Cash and cash equivalents 16 50 2 836 2 350 Total Assets 5 402 4 650 Equity attributable to equity holders of the parent Share capital (N$ 1 ordinary share) 1 150 1 000 Share premium account 590 500 Retained earnings 1 791 1 530 Total 3 531 3 030 Non- controlling interest 31 0 Total 3 562 3 030 Current liabilities Trade payables 1 690 1 520 Income tax payable 150 100 Total Current 1 840 1 620 Total equity and liabilities 5 402 4 650 The Consolidated Statement of Profit or Loss for the year ended 31 December 2017 was as follows: Revenue 10 000 Cost of sales (7 500) Gross profit 2 500 Administrative expenses (2 080) Profit before tax 420 Income tax expense (150) Profit for the period 270 Attributable to: Equity holders of the parent 261 Non- controlling interest 9 270 You are also given the following information: 1. All the subsidiary are wholly owned 2. Depreciation charged to the consolidated income statement amounted to N$210 000 3. There were no disposals of property, plant and equipment during the year 4. No dividend were paid by the parent company Required Prepare a Consolidated Statement of Cash flows for the year ended 31 December 2017 under the indirect method in accordance with IAS 7. (35 marks)