QUESTION ONE a) Below are the separate statements of financial position of Ghana Lid and its two investee companies as at 31 December 2017 Ghana Lid Nigeria Lid Togo Lid Ghe'm GHem GHA Non-current assey Property, plant and equiparent 2,458 1.410 870 Investment in Nigeria 500 Invesbucnt in Togo 27 240 2.985 1652 870 Current assers Inventories 450 200) 260 Trude receivable 610 165 139 Cash 240 95 116 1.300 660 515 Total Assets 4.285 2,310 1.395 Equity Ordinary share capital Ghleach 500 200 100 Share premium 250 120 50 Retained emings L572 850 3.155 1.892 1000 Current liabilities Trade payables 1.130 418 285 1105 4,285 2.310 1.385 The following information is relevant: 1) On 1 January 2016, Ghana Lad acquired 60% of the equity share capital Nigeria Lid. The consideration consisted of the following elements: cash of GH&500 million, a share exchange of two shares in Ghana Lid for every five acquired shares in Nigeria Ltd, GH 200 million to be paid after 2 years of acquisition and GH 400 million to be paid at the end of the ninth year of acquisition if Nigeria eams a retum of 25% on its equity. No entries bave been made in the financial statements except the cash offer. At the date of acquisition shares in Ghana Lid had a market value of GH4 ench nod the shares of Nigeria Lid had a stock market price of GH 3 cach. The cost of capital of Ghana is 10% ii) On 30 July 2015 Ghana acquired 10% of Togu Lid and on the same day Nigeria acquired 80% of Togo i) During the year, Nigeria sold goods to Togo of GH 260 million including a mark-up or 25% All of these goods remain in inventaries at the year end. iv) Nigeria Lid sold goods to Ghana for GH 300 million at a margin of 20% and only quarter of these goods were left in inventories nt the year end v) The retained camings of the three companies at the acquisition dates was 30 July 2015 Jonwary 2016 GHe'm GHe'm Ghana 1.610 1.860 Nigeria 700 950 Togo 40 100 v) At the date of acquisition, the fair values of Nigena Lad's assets were equal to their carrying amounts with the exception of its property. This had a fair value of GH 10 million below is carrying amount and a remaining useful life 3 years Nigeria Lid has not incorporated this value change in its separate financial statements vil) The far value of Ghana's 10% holding in Tayo on January 2016 wa GHES0 milion Ghana and Nigeria hold their investments in subsidiaries at cost in their separate fine statements. viil) liis group policy to value the non-controlling interests al fair value at acquisition. For this purpose, Nigeria's share price at the date can be deemed to be representative of the is value of the shares held by the non-controlling interest. However, the directors valued ure non-controlling interests in Topoul CH 210million on January 2016 2x) I was determined at the year and that 20% of the goodwill relating to the acquisition of Nigeria and Togo were impared Required: Prepare the longelighted Statement of financing position of China Crout Ltd as 31/secember 2017 QUESTION ONE a) Below are the separate statements of financial position of Ghana Lid and its two investee companies as at 31 December 2017 Ghana Lid Nigeria Lid Togo Lid Ghe'm GHem GHA Non-current assey Property, plant and equiparent 2,458 1.410 870 Investment in Nigeria 500 Invesbucnt in Togo 27 240 2.985 1652 870 Current assers Inventories 450 200) 260 Trude receivable 610 165 139 Cash 240 95 116 1.300 660 515 Total Assets 4.285 2,310 1.395 Equity Ordinary share capital Ghleach 500 200 100 Share premium 250 120 50 Retained emings L572 850 3.155 1.892 1000 Current liabilities Trade payables 1.130 418 285 1105 4,285 2.310 1.385 The following information is relevant: 1) On 1 January 2016, Ghana Lad acquired 60% of the equity share capital Nigeria Lid. The consideration consisted of the following elements: cash of GH&500 million, a share exchange of two shares in Ghana Lid for every five acquired shares in Nigeria Ltd, GH 200 million to be paid after 2 years of acquisition and GH 400 million to be paid at the end of the ninth year of acquisition if Nigeria eams a retum of 25% on its equity. No entries bave been made in the financial statements except the cash offer. At the date of acquisition shares in Ghana Lid had a market value of GH4 ench nod the shares of Nigeria Lid had a stock market price of GH 3 cach. The cost of capital of Ghana is 10% ii) On 30 July 2015 Ghana acquired 10% of Togu Lid and on the same day Nigeria acquired 80% of Togo i) During the year, Nigeria sold goods to Togo of GH 260 million including a mark-up or 25% All of these goods remain in inventaries at the year end. iv) Nigeria Lid sold goods to Ghana for GH 300 million at a margin of 20% and only quarter of these goods were left in inventories nt the year end v) The retained camings of the three companies at the acquisition dates was 30 July 2015 Jonwary 2016 GHe'm GHe'm Ghana 1.610 1.860 Nigeria 700 950 Togo 40 100 v) At the date of acquisition, the fair values of Nigena Lad's assets were equal to their carrying amounts with the exception of its property. This had a fair value of GH 10 million below is carrying amount and a remaining useful life 3 years Nigeria Lid has not incorporated this value change in its separate financial statements vil) The far value of Ghana's 10% holding in Tayo on January 2016 wa GHES0 milion Ghana and Nigeria hold their investments in subsidiaries at cost in their separate fine statements. viil) liis group policy to value the non-controlling interests al fair value at acquisition. For this purpose, Nigeria's share price at the date can be deemed to be representative of the is value of the shares held by the non-controlling interest. However, the directors valued ure non-controlling interests in Topoul CH 210million on January 2016 2x) I was determined at the year and that 20% of the goodwill relating to the acquisition of Nigeria and Togo were impared Required: Prepare the longelighted Statement of financing position of China Crout Ltd as 31/secember 2017