Question Two The statements of financial position of AB, its subsidiary CD and its associate EF are below: Statements f financial position as at AB CD FF 31-Mar-13 $000 So00 $000 ASSETS Non-current assets Property, plant and equipment 20000 8000 12000 Investments (held at cost) 11000 31000 12000 8000 Current assets 16000 6000 4000 Total assets 18000 12000 47000 EQUITY AND LIABILITIES Share capital ($1 shares) 10000 1000 1000 Retained earnings 25000 13000 9000 Total equity 35000 14000 10000 Total liabilities 12,000 4,000 12000 4000 2000 Total equity and liabilities 47000 18000 12000 Additional information: 1. AB acquired 80 % of the 1 million $1 equity shares of CD in 2008 for $8,500,000 when CD's retained earnings were $9,100,000. The non-controll ing interest in CD was measured at its fair value of $2,200,000 at the date of acquisition. The fair value of CD's net assets was the acquisition. There has been no impaiment of same as the book value at the date goodwill 2. AB acquired 40% of the 1 million $1 equity shares of EF in 2010 for $2,500,000 when EF's retained earnings were $5,000,000. This shareholding gave AB the ability to exercise significant influence over EF. Required: (a) Prepare the consolidated statement of financial position for the AB Group as at 31 March 2013. (7 marks) AB disposed of 200,000 of its shares in CD on 1 April 2013 for $3,100,000. (b) Calculate the adjustment to parent's equity that will be debited/credited (state which) to AB's group retained earnings at 31 March 2014 respect of this disposal (3 marks) Total for Question Two 10 marks) The statements of financial position of AB, its subsidiary CD and its associate EF are below CD Statements of financial position as at 31 March 2013 ASSETS Non-current assets EF R000 AB R000 RO00 8,000 12,000 Property, plant and 20,000 equipment Investments (held at 11000 cost) Current assets Total assets 12,000 6.000 18,000 16.000 47,000 8,000 4.000 12,000 EQUITY AND LIABILITIES Share capital (R1 shares) Retained earnings 25.000 Total equity Total liabilities 10,000 1,000 1,000 13.000 14,000 4.000 18,000 2.000 10,000 2000 12,000 35,000 Total equity and liabilities 47,000 Additional information: 1. AB acquired 80% of the 1 million R1 equity shares of CD in 2008 for R8500,000 when cos retained earnings were R9,100,000. The non-controlling interest in CD was measured at its fair value of R2,200,000 at the date of acquisition. The fair value of CD's net assets was the same as the book value at the date of acquisition. There has been no impairment of goodwill. 2, AB acquired 40% of the 1 million R1 equity shares of EF in 2010 for R2500,000 when EF's retained earnings were R5,000,000. This shareholding gave AB the ability to exercise significant influence over EF Required (a) Prepare the consolidated statement of financial position for the AB Group as at 31 March 2013 (7 marks) AB disposed of 200,000 of its shares in CD on 1 April 2013 for R3,100,000. b) Calculate the adjustment to parent's equity that will be debited/credited (state which) to AB's group retained earnings at 31 March 2014 in respect of this disposal. (3 marks) Question Two The statements of financial position of AB, its subsidiary CD and its associate EF are below: Statements f financial position as at AB CD FF 31-Mar-13 $000 So00 $000 ASSETS Non-current assets Property, plant and equipment 20000 8000 12000 Investments (held at cost) 11000 31000 12000 8000 Current assets 16000 6000 4000 Total assets 18000 12000 47000 EQUITY AND LIABILITIES Share capital ($1 shares) 10000 1000 1000 Retained earnings 25000 13000 9000 Total equity 35000 14000 10000 Total liabilities 12,000 4,000 12000 4000 2000 Total equity and liabilities 47000 18000 12000 Additional information: 1. AB acquired 80 % of the 1 million $1 equity shares of CD in 2008 for $8,500,000 when CD's retained earnings were $9,100,000. The non-controll ing interest in CD was measured at its fair value of $2,200,000 at the date of acquisition. The fair value of CD's net assets was the acquisition. There has been no impaiment of same as the book value at the date goodwill 2. AB acquired 40% of the 1 million $1 equity shares of EF in 2010 for $2,500,000 when EF's retained earnings were $5,000,000. This shareholding gave AB the ability to exercise significant influence over EF. Required: (a) Prepare the consolidated statement of financial position for the AB Group as at 31 March 2013. (7 marks) AB disposed of 200,000 of its shares in CD on 1 April 2013 for $3,100,000. (b) Calculate the adjustment to parent's equity that will be debited/credited (state which) to AB's group retained earnings at 31 March 2014 respect of this disposal (3 marks) Total for Question Two 10 marks) The statements of financial position of AB, its subsidiary CD and its associate EF are below CD Statements of financial position as at 31 March 2013 ASSETS Non-current assets EF R000 AB R000 RO00 8,000 12,000 Property, plant and 20,000 equipment Investments (held at 11000 cost) Current assets Total assets 12,000 6.000 18,000 16.000 47,000 8,000 4.000 12,000 EQUITY AND LIABILITIES Share capital (R1 shares) Retained earnings 25.000 Total equity Total liabilities 10,000 1,000 1,000 13.000 14,000 4.000 18,000 2.000 10,000 2000 12,000 35,000 Total equity and liabilities 47,000 Additional information: 1. AB acquired 80% of the 1 million R1 equity shares of CD in 2008 for R8500,000 when cos retained earnings were R9,100,000. The non-controlling interest in CD was measured at its fair value of R2,200,000 at the date of acquisition. The fair value of CD's net assets was the same as the book value at the date of acquisition. There has been no impairment of goodwill. 2, AB acquired 40% of the 1 million R1 equity shares of EF in 2010 for R2500,000 when EF's retained earnings were R5,000,000. This shareholding gave AB the ability to exercise significant influence over EF Required (a) Prepare the consolidated statement of financial position for the AB Group as at 31 March 2013 (7 marks) AB disposed of 200,000 of its shares in CD on 1 April 2013 for R3,100,000. b) Calculate the adjustment to parent's equity that will be debited/credited (state which) to AB's group retained earnings at 31 March 2014 in respect of this disposal