Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Statements of comorehensive income for the vear ended 30 June 2020 Statement of changes in equity for the year to 30 June 2020 The following

image text in transcribed
image text in transcribed
Statements of comorehensive income for the vear ended 30 June 2020 Statement of changes in equity for the year to 30 June 2020 The following information is also available: 1. On 1 July 2015 , Romeo Plc paid 3,153,000 to acquire 75% of the ordinary shares and 10% of the preference shares of Juliet Ltd. On that date, the retained earnings of Juliet Ltd were 704,000. 2. The fair value of the non-current assets of Juliet on 1 July 2015 exceeded their carrying amount by 600,000. This valuation has not been reflected in the books of Juliet Ltd. 3. Juliet Ltd has issued no shares since being acquired by Romeo PIc. 4. Goodwill had suffered impairment losses of 30% by 30 June 2019 and there was a further impairment loss during the year to 30 June 2020 . This further impairment loss is equal to 10% of the amount originally paid for goodwill. 5. Romeo Plc sells goods to Juliet Ltd at cost plus 60%. During the year to 30 June 2020 , these sales totalled 2,400,000 of which 216,000 was still owing to Romeo Plc at the end of the year. The inventory of Juliet Ltd on 30 June 2020 includes goods bought from Romeo for 512,000. 6. Any depreciation consequences of the fair value adjustment may be ignored. Required: (a) Prepare a consolidated statement of comprehensive income for the year to 30 June 2020. (b) Prepare a consolidated statement of changes in equity for the year to 30 June 2020. (c) Prepare a consolidated statement of financial position as at 30 June 2020

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Principles Of Auditing

Authors: Hugo Romero

1st Edition

1632409372, 978-1632409379

More Books

Students also viewed these Accounting questions