NCI share of subsidiary 5 34140 512 1423 Less 10 fair value

Nci share of subsidiary 5 34140 512 1423 less 10 fair

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NCI share of subsidiary profit (10% × 14,225 (34,140 × 5/12)) 1,423 Less: 10% fair value depreciation (10% × 625) (63) 10% PURP (10% × 1,200) (120) 10% Impairment (10% × 1,000) (100) –––––– 1,140 –––––– (W5) Group retained earnings $000 100% Packer 158,800 90% Scott post-acquisition (90% × (12,400 (W2)) 11,160 FV Investment gain 2,000 Impairment – group share (90% × 1,000) (900) ––––––– 171,060 –––––––
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PAPER F7 : FINANCIAL REPORTING 20 KAPLAN PUBLISHING ACCA marking scheme Marks (a) Consolidated statement of profit or loss (Each adjustment worth ½ unless stated otherwise) Revenue (addition, intercompany) 1 Cost of sales (addition, intercompany, FV, PURP) 2 Distribution cost ½ Admin expenses (addition, impairment) 1 Investment income (Parent, FV movement) 1 Finance cost ½ Tax ½ Attributable to P shareholders ½ NCI (share of profit, FV, PURP, impairment) 2 –– 9 (b) Consolidated statement of financial position Goodwill (share ½, loan notes ½, NCI ½, NA @ acqn 1½, impairment ½) PPE (addition, FV, depn) Investment 1 Current assets (addition, PURP, intercompany) Share capital 1 Share premium ½ Retained earnings (P ½, 90% ½, sub’s profit 1, impairment ½, FV gain ½) 3 NCI (acq ½, 10% ½, sub’s profit 1, impairment ½) Non-current liabilities ½ Current liabilities (addition, intercompany) 1 –– 16 –– (c) One mark per sensible point made 5 –– Total 30 ––
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