Question 1
Question 2
Question 3
Continous question of no-3
Financial Accounting
could you answer this two accounting questions
Question 5 On 1 January 20X7 Parent Ltd acquired 75% of the ordinary shares in Daughter Ltd for 9,000 cash. The fair value of the net assets in Daughter Ltd was their book value. Assume in each case that the non-controlling interest is measured using Method 1. Required: see above. Rouge plc acquired 100% of the common shares of Noir plc on 1 January 20X0 and gained control. At that date the statements of financial position of the two companies were as follows: Rouge milion Noir milion ASSETS Non-aurrent assets Property, plant and equipment Investment in Noir Current assets 100 60 132 80 70 Total assets 312 130 EQUITY AND LIABILITIES Ordinary l shares Retained earnings 200 60 52 40 252 00 Current liabilities 60 30 Total equity and liabilities. 312 130 Note: The fair values are the same as the book values. Required: Prepare a consolidated statement of financial position for Rouge plc as at 1 January 20X0. Ham plc acquired 100% of the common shares of Burg plc on 1 January 20X0 and gained control. At that date the statements of financial position of the two companies were as follows: Ham Burg 000 000 ASSETS Non-current assets Property, plant and equipment Investment in Burg 250 100 90 10 Current assets 70 Total assets 440 170 EQUITY AND LIABILITIES Capital and reserves l shares 200 100 10 160 Retained earnings 360 60 80 Current liabilities 170 440 Total equity and liabilities 8 RE Notes: 1. The fair value is the same as the book value. 2. 15,000 of the negative goodwill (badwill) arises because the net assets have been acquired at below their fair value and the remainder covers expected losses of 3,000 in the year ended 31/12/20X0 and 2,000 in the following year. Required: (a) Prepare a consolidated statement of financial position for Ham plc as at 1 January 20X0. (b) Explain how the negative goodwill (badwill) will be treated. * Question 5 On 1 January 20X7 Parent Ltd acquired 75% of the ordinary shares in Daughter Ltd for 9,000 cash. The fair value of the net assets in Daughter Ltd was their book value. Assume in each case that the non-controling interest is measured using Method 1. Required: see above. Rouge plc acquired 100% of the common shares of Noir plc on 1 January 20X0 and gained control. At that date the statements of financial position of the two companies were as follows: Rouge milion Noir milion ASSETS Non-aurrent assets Property, plant and equipment Investment in Noir 100 60 132 Current assets 80 70 Total assets 312 130 EQUITY AND LIABILITIES Ordinary l shares Retained earnings 200 60 52 40 252 00 Current liabilities 60 30 Total equity and liabilities. 312 130 Note: The fair values are the same as the book values. Required: Prepare a consolidated statement of financial position for Rouge plc as at 1 January 20X0
