Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Statement of Financial Position as at 31 December 2017 Non-Current Assets Freehold Property Plant and Machinery Investment Current Assets Inventory Trade Receivables Cash Total
Statement of Financial Position as at 31 December 2017 Non-Current Assets Freehold Property Plant and Machinery Investment Current Assets Inventory Trade Receivables Cash Total Assets Equity and Liabilities Equity Share Capital-RMI Shares Retained Earnings Non-Current Liabilities 12% loan stock Current Liabilities Trade Payables Bank Overdraft Total Equity and Liabilities Prominent RM ('000) 1950 795 1500 4245 575 330 50 955 5200 2000 1460 3460 500 680 560 1240 5200 Sorry RM ('000) 1250 375 1625 300 290 120 710 2335 1000 885 1885 100 350 350 2335 Additional Information: 1. Prominent Co acquired 600,000 ordinary shares in Sorry Co. on 1 January 2013 for RM1,000,000 when the retained profit of Sorry Co. was RM200,000. 2. At the date of acquisition of Sorry Co, the fair value of its freehold property was considered to be RM400, 000 greater than its value in Sorry Co's Statement of Financial Position. Sorry Co. had acquired the property in January 2013 and 50% of the value building had depreciated on cost over 50 years. 3. Non-Controlling interest was valued at full fair value. Sorry Co. shares were trading at RM1.60 prior to the acquisition by Prominent Co. Required: Prepare a Consolidated Statement of Financial Position as at 31 December 2017. (Show the working)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Step 1 Find the acquirer Prominent Co is the acquirer in the given question Since Prominent Co acquired Majority of stake in Sorry ie 6060000010000000 ...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started