Unit 11 - Grp Rep - Consol Fin Stat

Acquired only 2400000 shares in s ltd ie 80 of the

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: just for impairment of goodwill, if any. 13 Example 1 – Consolidation after the Date of Acquisition Assume that H Ltd. acquired only 2,400,000 shares in S Ltd., i.e. 80% of the share capital of S Ltd. on 30 June 20X1, and the profits earned by S Ltd. are evenly distributed over the financial year. Both H Ltd. and S Ltd. have no other comprehensive income. H Ltd. is preparing its financial statements as of 31 December 20X1. 14 Example 1 – Statements of Financial Position of H Ltd & S Ltd as at 31 December 20X1 H Ltd $000 Fixed Assets 4,000 Investments in S Ltd. 3,800 Current Assets 2,400 10,200 Ordinary Share Capital of $1 each 8,000 Retained Profits 1,900 9,900 Current Liabilities 300 10,200 S Ltd $000 3,200 1,000 4,200 3,000 1,000 4,000 200 4,200 15 Example 1 - Income Statements of H & S for the year ended 31 December 20X1 Turnover Cost of sales Gross profit Distribution costs Administration expenses Other operating expenses Profit before tax Income tax expense Profit for the year H Ltd $000 10,280 (6,820) 3,460 (490) (900) (540) 1,530 (30) 1,500 S Ltd $000 4,500 (3,000) 1,500 (160)...
View Full Document

This document was uploaded on 04/03/2014.

Ask a homework question - tutors are online