Question $3$

Standard Co acquired $80\%$ of Odense SA for $$520,000$ on $1$ January $20$X$4$ when the retained

reserves of Odense were $2,100,000$ Danish Krone.

An impairment test conducted at the year$-$end revealed impairment losses of $168,000$ Danish

Krone relating to Odense's recognized goodwill. No impairment losses had previously been

recognized.

The translation differences in the consolidated financial statements at $31$ December $20$X$5$

relating to the translation of the financial statements of Odense $($excluding goodwill$)$ were

$$27,000.$ Retained reserves of Odense in Odense's separate financial statements in the postacquisition period to $31$ December $20$X$5$ as translated amounted to $$138,000.$ The dividends

charged to retained earnings in $20$X$6$ were paid on $31$ December $20$X$6.$

It is the group's policy to value the non$-$controlling interest at acquisition at its proportionate

share of the fair value of the subsidiary's net assets.

Exchange rates were as follows:

Kr to $$1$

$1$ January $20$X$49\mathrm{.}4$

$31$ December $20$X$58\mathrm{.}8$

$31$ December $20$X$68\mathrm{.}1$

Average $20$X$68\mathrm{.}4$

Required

Prepare the consolidated statement of financial position, statement of profit or loss and

other comprehensive income and statement of changes in equity extract for retained

earnings of the Standard Group for the year ended $31$ December $20$X$6.$ All workings must

be shown.

Total