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The Omaheke Manufacturers Ltd acquired Salomon Factory Lid on 1 January 2015 for N$ 1.8 million of Salomon Factory Lid ordinary 50 cents shares paying
The Omaheke Manufacturers Ltd acquired Salomon Factory Lid on 1 January 2015 for N$ 1.8 million of Salomon Factory Lid ordinary 50 cents shares paying N$1.2m. At the date of acquisition the retained earnings of Salomon Factory Lid were N$110.000. The draft balance sheets of the two enterprises as at 31 December 2017 were as follows: Omaheke Salomon Manufacturers Factory Ltd Lid N$ 000 N$ 000 Assets Non-current assets: Property 1.750 1,340 Plant and equipment 930 620 Investment in Lia 1.400 4,080 1.960 Current assets: Inventory 370 250 Trade receivables 410 250 Cash 110 20 890 530 Total assets 4,970 2,490 Equity and liabilities Equity Ordinary shares 2,200 1.200 Share premium account 200 100 Retained eamings 1.320 200 3.720 1,500 Non-current liabilities: Loans 740 Current liabilities: Trade payables 350 240 Tax 80 10 430 250 Total equity and liabilities 4,970 2.490 820 Page 2 of 7 The additional information: i. When Omaheke Manufacturers Lid bought the shares in Salomon Factory Lid it also made a loan to Salomon Factory Lid of N$200,000. This loan is still outstanding ill. The fair value of Salomon Factory Lid property and plant and equipment at the date of acquisition was N$100.000 and N$50,000 respectively in excess of the carrying values. Salomon Factory Lid balance sheet has not taken account of these fair values. Group depreciation policy is as follows: Property 2% and Plant and equipment 10% per annum using straight-line basis. Depreciation is calculated on fair values where available. An impaiment review has been carried out on the consolidated goodwill at the end of each year since the acquisition the goodwill impaired has been as follows: in 2015/12/31 N$ 5 000, 2016/12/31 N$ 2 000, 2017/12/31 N$ 3 000 respectively Required: Prepare the consolidated balance sheet of the Omaheke Manufacturers as at 31
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