Week08_Discussion_Question_Solutions

Week08_Discussion_Question_Solutions - Week 8 Discussion...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Week 8 Discussion Questions 18.30t Worksheet for consolidated balance sheet at control date Consolidation worksheet at 1 July 20X3: Balance sheet Duterrau Strutt Data adjustments Sum Eliminations Group Dr Cr Dr Cr Paid-up capital 500 000 200 000 700 000 200 000 1 500 000 Reserves 125 000 12 300 at/ a 41 000 153 700 28 700 1 125 000 Retained profits 67 000 38 000 105 000 38 000 1 67 000 Owners’ equity 692 000 238 000 958 700 692 000 Deferred tax liability at 12 300 12 300 12 300 Total equities 692 000 238 000 971 000 704 300 Investment in Strutt 285 000 285 000 1 285 000 Consolidation goodwill 18 300 1 18 300 Other net assets 407 000 238 000 41 000 a 686 000 686 000 Net assets 692 000 238 000 53 300 53 300 971 000 285 000 285 000 704 300 Adjustment a: Increases net assets to their fair values at control date by crediting amount to the fair value reserve (included within the Reserves heading). Adjustment at: Tax effect of recognising other net assets at control date fair value (30% of 41 000). Elimination 1: Substitution. Comments on application of tax effects Substitution In the chapter we explained that the temporary difference that occurs by the elimination of the parent investment does not give rise to any deferred tax; and the same is true for the temporary difference that arises when consolidation goodwill is recognised (AASB
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 10/25/2011 for the course ACCT 5942 taught by Professor Diane during the Three '11 term at University of New South Wales.

Page1 / 5

Week08_Discussion_Question_Solutions - Week 8 Discussion...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online