The following statements of financial position have been prepared at 31 December 20X8. 

 High                Low

   $                      $

 Non-current assets:

Property, plant & equipment                                                      150,000            50,000

Investment: Shares in Jones                                                         85,000

Current assets                                                                           150,000            90,000

385,000            140,000

Equity: Ordinary $1 shares                                                        120,000            50,000

Share premium                                                                          60,000             15,000

Retained earnings                                                                     110,000            40,000    

290,000            105,000

Current liabilities                                                                       95,000               35,000   

385,000             140,000

 

High Co. acquired 40,000 ordinary $1 shares in Jade Co on 1 January 20X8, when Jones’ retained earnings stood at $10,000 and its share premium was $20,000. On this date, the fair value of the 20% noncontrolling shareholding in Jones was $10,000. The Dickens Group uses the fair value method to value the noncontrolling interest.

Required

A  Calculate Goodwill at acquisition & Calculate Group Reserves                                                                              

B. Prepare Consolidated Statement of Financial Position, showing goodwill and Non– Controlling Interest