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QUESTION 4 (complex groups) (20) The following are the abridged trial balances of A Limited, B Limited and C Limited at 31 December 2019: A

QUESTION 4 (complex groups) (20) The following are the abridged trial balances of A Limited, B Limited and C Limited at 31 December 2019:

A B C
$ $ $
CREDITS
Share Capital:
-100 000 ordinary shares 100 000
-80 000 ordinary shares 80 000
-30 000 ordinary shares 60 000
Retained earnings 200 000 150 000 110 000
Profit for the period 345 000 220 000 95 000
645 000 450 000 265 000
DEBITS
Property plant and Equipment 266 500 284 000 136 500
Investment in equity instruments:
Investment in B. Ltd 110 000
Investment in C. Ltd 100 000
Trade and other receivables 35 000 60 000 65 000
Income tax expense 103 500 66 000 28 500
Dividends paid 30 000 40 000 35 000
645 000 450 000 265 000

Additional information Note 1. A Limited purchased 60 000 shares in B Limited on 1 January 2016, when B Limiteds retained earnings amounted to $60 000. On 1 January 2017 A Limited acquired 27 000 shares in C Limited, when the retained earnings of C Limited amounted to $40 000. On both acquisition dates, A Limited acquired control over the respective companies and the fair values of the identifiable assets, liabilities and contingent liabilities were considered to be equal to the carrying amounts of these items.

Note 2. Each share carries 1 vote.

Note 3. The group uses the partial goodwill method to recognise goodwill. (The non-controlling interests are measured at their proportionate interest in the net identifiable assets of the acquiree) Goodwill was not considered to be impaired at year-end.

Note 4. The fair values of investments in equity instruments are equal to the cost price thereof. The equity investments are measured at fair value through other comprehensive income (FVTOCI).

Required: Prepare the consolidated annual financial statements of the A Limited Group for the year ended 31 December 2019. Your answer must comply with the requirements of International Financial Reporting Standards. No notes are required. Ignore comparative figures (20)

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