Question

On 1 July 2021 Anderson Ltd acquires 70 per cent of the equity capital of Thruster Ltd at a cost of $4

million. At the date of acquisition all assets of Thruster Ltd are fairly stated, and the total shareholders

funds of Thruster Ltd are $4.4 million, consisting of:

Share capital

$3

000

000

Retained earnings

$1

400

000

$4

400

000

As at 30 June 2023 (two years after the date of acquisition) the financial statements of the two companies

are as follows:

Anderson Ltd

($000)

Thruster Ltd

($000)

Detailed reconciliation of opening and closing

retained earnings

Sales revenue

800

200

Cost of goods sold

(200)

(80)

Other expenses

(120)

(60)

Other revenue

310

85

Profit

790

145

Tax

170

35

Profit after tax

620

110

Retained earnings30 June 2022

2

000

1

600

2

620

1

710

Dividends paid

(400)

(80)

Retained earnings30 June 2023

2

220

1

630

Statement of financial position

Shareholders equity

Retained earnings

2

220

1

630

Share capital

8

000

3

000

Current liabilities

Accounts payable

120

80

Non-current liabilities

Loans

1

200

500

11

540

5

210

Current assets

Cash

300

50

Accounts receivable

500

350

Inventory

1

000

600

Non-current assets

Land

2

800

2

210

Plant

2

940

2

000

Investment in Thruster Ltd

4

000

11

540

5

210

Additional information

The management of Anderson Ltd measures any non-controlling interest in Thruster Ltd at fair value.

During the 2023 financial year Thruster Ltd sells $45

000 of inventory to Anderson Ltd. At year end,

Anderson Ltd has sold all this inventory.

The tax rate is 30 per cent.

REQUIRED

Prepare the consolidated statement of financial position, consolidated statement of comprehensive income,

and consolidated statement of changes in equity for Anderson Ltd and its controlled entity