Consolidation Emile Woolf F7 exam kitt 2013 Hydrox page 79 please any help

Hydrox
Hydrox acquired 90% of Syntax’s equity shares on 1 April 2010 for $30 million when
Syntax’s retained earnings were $15 million. The statements of financial position of the
two companies at 31 March 2012 are shown below:
Statement of financial position Hydrox Syntax
$000 $000 $000 $000
Non-current assets:
Property, plant and equipment at depreciated historic
cost
26,400 16,200
Investment in Syntax 30,000
Other quoted investments at cost 1,000 6,000
57,400 22,200
Current assets:
Inventory 9,500 4,000
Accounts receivable 7,200 1,500
Bank 300 nil
17,000 5,500
Total assets: 74,400 27,700
Equity and liabilities
Share capital and reserves:
Equity shares of $1 each 10,000 5,000
Reserves:
Retained earnings 48,600 6,300
58,600 11,300
Non-current liabilities:
12% Debenture 4,000
Bank loan 6,000
Current liabilities:
Accounts payable 6,700 5,200
Provision for taxation 4,100 700
Dividends payable (announced before the year
end)
1,000 nil
Overdraft nil 4,500
11,800 10,400
Total equity and liabilities: 74,400 27,700
The following information is relevant:
(i) The movements on the retained earnings of Syntax since the date of acquisition
have been:
Loss after
tax
Dividends
paid
$000 $000 $000
Balance at acquisition, 1 April 2010 15,000
Year to 31 March 2011 (3,000) nil (3,000)
Year to 31 March 2012 (1,700) (4,000) (5,700)
????

Hydrox accounted for its share of Syntax’s dividend as a credit to its income
statement. The group policy is that only dividends paid out of post-acquisition
profits are credited to income.
(ii) At the date of acquisition the fair values of Syntax’s net assets were
approximately equal to their book values with the exception of two items.
???? Specialised plant of Syntax had a net replacement cost of $6 million in
excess of its book value; it had an estimated remaining life of five years.
???? The stock market value of Syntax’s investments was $8 million
There have been no acquisitions or disposals of non-current assets since the date
of acquisition.
(iii) An impairment test at 31 March 2012 on the consolidated goodwill concluded
that it should be written down by $400,000. No other assets were impaired.
(iv) Three days before the current year-end Hydrox processed the accounting entries
in respect of a credit sale of goods to Syntax at a selling price of $600,000.
Hydrox charges a standard mark-up on cost of 20% on all its sales. Syntax had
not received the goods and had therefore not included them in inventories, nor
had it received the invoice for them by the year-end. The agreed balance on
Syntax’s purchase ledger account with Hydrox prior to this transaction was $1.4
million.
Required:
Prepare the consolidated statement of financial position of Hydrox as at 31 March 2012.

Please help me I cannot get the goodwill Please