{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

B407F Week 5 Tutorial Question

B407F Week 5 Tutorial Question - B407F Week 5...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
B407F Week 5 Tutorial -Consolidated Financial Statements (II) Statements of financial positions as at 31 December Year 4 of two companies were as follows: D Ltd. E Ltd. $000 $000 Land 204 140 Investment in E Ltd – 8,000 shares 100 – debentures 20 Amount due from E Ltd 100 Current assets 140 180 564 320 Financed by: Ordinary shares @$2 200 20 Share premium 14 Revaluation reserves 40 Retained profits 240 80 Current liabilities 110 80 Amount due to D Ltd 70 Debentures 30 564 320 Additional information: 1. D Ltd acquired the ordinary shares of E Ltd on 1 January Year 1 when E Ltd’s retained profits had a credit balance amount to $40,000. 2. On the acquisition of E Ltd, land of E Ltd was revalued to give a revaluation surplus of $30,000. Another revaluation of the land took place on 31 December Year 3. 3. There was a remittance for $30,000 from D Ltd to E Ltd on 30 December Year 4, but actually received by the latter on 2 January Year 5. 4. D Ltd. has a policy of accounting for non-controlling interest at net asset value. It is the group’s accounting policy to recognize goodwill arising on acquisition as an asset less any accumulated impairment losses. As at 31 December Year 4, there was no foreseeable impairment on goodwill arising on consolidation. 1
Background image of page 1

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

View Full Document Right Arrow Icon
Required: (a) Prepare the consolidated journal entries. (b) Prepare the consolidation worksheet and consolidated statement of financial position for D Group as at 31 December Year 4. Angle Limited is a well-established company which, over a number of years, built up a large balance of liquid resources surplus to operating requirements. The decision was taken, late in Year 0, to use these resources to diversify the company’s activities, and substantial shareholdings were subsequently acquired in Bangle Limited. The following information is provided in respect of two companies:
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Page1 / 8

B407F Week 5 Tutorial Question - B407F Week 5...

This preview shows document pages 1 - 3. Sign up to view the full document.

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