The following are the financial statements of the parent company Alpha plc, a subsidiary company Beta and

Question:

The following are the financial statements of the parent company Alpha plc, a subsidiary company Beta and an associate company Gamma.

The following are the financial statements of the parent company Alpha

On 1 January 20X5 Alpha plc acquired 80% of Beta plc for £216,000 when Beta plc€™s share capital and reserves were £81,000 and 30% of Gamma Ltd for £156,600 when Gamma Ltd€™s share capital and reserves were £40,500. The fair value of the land at the date of acquisition was £337,500 in Beta plc and £270,000 in Gamma Ltd. Both companies have kept land at cost in their statement of financial position. All other assets are recorded at fair value. There have been no further share issues or purchases of land since the date of acquisition.
At the year end, Alpha plc has inventor y acquired from Beta plc and Gamma Ltd. Beta plc had invoiced the inventor y to Alpha plc for £54,000 €“ the cost to Beta plc had been £40,500 and Gamma Ltd had invoiced Alpha plc for £13,500 €“ the cost to Gamma Ltd had been £8,100. Goodwill has been impaired by £52,650. The whole of the impairment relates to Beta.
Non-controlling interests are measured using method 1.

Required:
Prepare Alpha plc€™s consolidated statement of financial position as at31.12.20X9.

Goodwill
Goodwill is an important concept and terminology in accounting which means good reputation. The word goodwill is used at various places in accounting but it is recognized only at the time of a business combination. There are generally two types of...
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Financial Accounting and Reporting

ISBN: 978-0273744443

14th Edition

Authors: Barry Elliott, Jamie Elliott

Question Posted: