Forums › ACCA Forums › ACCA FA Financial Accounting Forums › Consolidated Statement of financial positions is not the same?
- This topic has 1 reply, 2 voices, and was last updated 4 years ago by John Moffat.
- AuthorPosts
- April 7, 2020 at 5:50 am #566700AnonymousInactive
- Topics: 3
- Replies: 0
- ☆
Question 1
The following are the financial statements of Sky Plc and its subsidiary Nova Plc as at 31 December 2016.
Statement of financial position as at 31 December 2016
Sky
£ Nova
£
Non-current assets:
Property, plant and equipment 41,200 52,600
Investments:
Investment in Nova Plc 28,000 —
Current assets:
Inventory 12,300 6,100
Bond interest receivable 110 —
Current account – Nova Plc 10,500 —
Other current assets 3,390 4,300
95,500 63,000
Equity and reserves:
Common shares 35,000 12,500
Preference shares 6,000 9,000
Retained earnings 36,750 10,200
77,700 31,700
Non-current liabilities 8,600 10,800
Current liabilities:
Bond interest payable 290 440
Current account – Sky Plc — 10,500
Other current liabilities 8,860 9,560
95,500 63,000The following information is also available:
1. On 30 September 2015 Sky Plc acquired 70% of the equity shares, 40% of the preference shares and 25% of the bonds in Nova Plc and gained control. The balance of retained earnings on 30 September 2015 was £7,000.
2. At acquisition, the fair value of land owned by Nova was £2,000 above book value. No adjustment has so far been made for this revaluation. Also, the fair value of the non-controlling interest at the same date was £12,650. Non-controlling interest is to be measured using Method 2.
3. During the year Sky sold goods to Nova for £4,200, which represents cost plus a mark-up of 40%. 40% of these goods were still in the inventory of Nova at the end of 31.12.2016.
5. 40% of the goodwill is to be written off as an impairment loss.
6. There is no depreciation of land and there has been no movement on share capital since acquisition.What is the goodwill? I got 8042 and my total equity and liability is not the same as my total assets on balance sheet for consolidated statement of financial positions?
April 7, 2020 at 8:07 am #566713There is no point in simply typing out a full question and expecting us to provide a full answer.
You must have an answer in the same book in which you found the question, so ask about whatever it is in the answer that you are not clear about – then I will explain.
Everything needed for Paper FA is covered in detail in my free lectures – they are a complete free course.
- AuthorPosts
- The topic ‘Consolidated Statement of financial positions is not the same?’ is closed to new replies.