Question 1: Trinidad

The statements of Financial Position of two companies are as follows for 31st December Year 1

	Trinidad	Tobaga
	$m	$m
Investment in Tobaga	800
Assets	1,000	900
	1,800	900
Ordinary Shares ($1)	400	300 (300/1= 300 million shares)
Accumulated Profits	500	400
Equity	900	700
Liabilities	900	200
	1,800	900

Additional Information:

Trinidad has today, 31st December Year 1 acquired 225 m shares of Tobagos shares

Required:

Prepare the Consolidated Statement of Financial Position for the Trinidad group.

Question 2 : Croatio: Pre and Post Acquisition reserves

The Statements of Financial Position of two companies are as follows for 31st December Year 1

	Croatio	Zagreb
	$m	$m
Non-Current Assets
Tangible	1,000	800
Investment in Zagreb	600
Current Assets	400	200
	2,000	1,000
Ordinary Shares ($1)	800	100
Accumulated Profits	750	400
Equity	1,550	500
Non-Current Liabilities	250	300
Current Liabilities	200	200
	2,000	1,000

Additional Information:

Croatia acquired 60m shares in Zagreb one year ago, 1/1/Year 1, when the reserves of Zagreb were $60M.

Required:

Prepare the Consolidated Statement of Financial Position for the Croatia group for year 2.

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