Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 1 The draft financial statements for the year ended 31 March 2022 for P Ltd and S Ltd are as follows: Statement of Profit

image text in transcribedimage text in transcribed

Question 1 The draft financial statements for the year ended 31 March 2022 for P Ltd and S Ltd are as follows: Statement of Profit or I nce for the vaarandad 31Marh onos The Statement of Financial Position of the three companies at 31 March 2022 were shown below: The following information is available: 1. P Ltd acquired 80% ordinary shares in S Ltd on 1 January 2020 when the retained earnings of S Ltd had credit balance of $1.27 million. 2. During the year, P Ltd sold goods with an invoice value of $800,000 to S Ltd. Of these, goods with a value of $200,000 were in inventory with S Ltd on 31 March 2022. The profit element is 20% of selling price for SLtd. 3. All dividends receivable from S Ltd are not accounted for in the books of PLdd. 4. Goodwill is to be dealt with in line with HKFRS 3 'Business Combinations'. Review of the carrying amount of goodwill had been carried out and impairment by 25% should be provided. Required Prepare the consolidated statement of profit or loss and consolidated statement of financial position as at 31 March 2022 (40 marks) Question 1 The draft financial statements for the year ended 31 March 2022 for P Ltd and S Ltd are as follows: Statement of Profit or I nce for the vaarandad 31Marh onos The Statement of Financial Position of the three companies at 31 March 2022 were shown below: The following information is available: 1. P Ltd acquired 80% ordinary shares in S Ltd on 1 January 2020 when the retained earnings of S Ltd had credit balance of $1.27 million. 2. During the year, P Ltd sold goods with an invoice value of $800,000 to S Ltd. Of these, goods with a value of $200,000 were in inventory with S Ltd on 31 March 2022. The profit element is 20% of selling price for SLtd. 3. All dividends receivable from S Ltd are not accounted for in the books of PLdd. 4. Goodwill is to be dealt with in line with HKFRS 3 'Business Combinations'. Review of the carrying amount of goodwill had been carried out and impairment by 25% should be provided. Required Prepare the consolidated statement of profit or loss and consolidated statement of financial position as at 31 March 2022 (40 marks)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting For MBAs

Authors: Easton, Wild, Halsey, McAnally

7th Edition

1618532316, 978-1618532312

More Books

Students also viewed these Accounting questions