B407F Week 4 Tutorial Solution- supplementary

B407F Week 4 Tutorial Solution- supplementary - B407F Week...

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B407F Week 4 Tutorial -Consolidated Financial Statements (1) - supplementary Question 1 (a)(i) Goodwill arising on consolidation $’000 $’000 Cost of investment (2,000,000 shares x $7) 14,000 Cash 6,000 20,000 Less: net assets acquired Share capital 12,000 Revaluation reserves 1,500 Other reserves 2,500 Retained earnings 2,000 18,000 x 80% 14,400 Goodwill arising on consolidation 5,600 (a) (ii) Non-controlling interests $’000 $’000 NCI at acquisition (18,000 x 20%) 3,600 Retained earnings (2,750 – 2,000) 750 Revaluation reserves (3,000 – 1,500) 1,500 Other reserves (2,900 – 2,500) 400 2,650 x20% 530 4,130 (a) (iii) Retained earnings for the year $’000 $’000 Honey 6,000 Add: Sugar’s profit for the year (750 x 80%) 600 6,600 1
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(b) Honey Group Consolidated Statement of Financial Position as at 31 December Year 1 $’000 $’000 Non-current assets Goodwill arising on consolidation 5,600 Freehold property 46,000 Fixtures and fittings 7 4,0 00 120,000 Current assets Inventory
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This note was uploaded on 02/24/2012 for the course ACT 407 taught by Professor Mshui during the Fall '11 term at The Open University.

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B407F Week 4 Tutorial Solution- supplementary - B407F Week...

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