Question 9

The following statements of financial position have been prepared at 31 December 208 : Smith Ltd acquired its holding in Jones Ltd on 31 December 20x7, when Jones' retained earnings stood at $20,000. At this date, the fair value of items of property, plant and equipment was estimated as being $10,000 higher than their book value. The remaining life of these assets at 31 December 207 was estimated at five years and Jones uses the straight-line method of depreciation. Prepare the consolidated statement of financial position of Smith Ltd at 31 December 208