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help solve corporate reporting question below (Financial Position)

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › help solve corporate reporting question below (Financial Position)

  • This topic has 1 reply, 2 voices, and was last updated 1 year ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • March 21, 2024 at 1:00 am #703234
    obengcliff
    Participant
    • Topics: 2
    • Replies: 1
    • ☆

    copy the following and paste into a Word document to have them well arranged:

    On 1 June 2012, Augustine bought 60% of Veronica‘s ordinary shares in the secondary market, paying GHC280,000 cash. The summarized statements of financial position for the two companies as at 31 December 2012 are as follows:
    Augustine Veronica
    GHC‘000 GHC‘000
    Non-current asseets
    Property, plant and equipment 276 230
    Investments 324
    —— —–
    600 230
    —— ——-
    Current assets
    Inventory 30 34
    Receivables 38 40
    Bank and cash 4 –
    —— ——-
    72 74
    —– —–
    Total assets 672 304
    ==== ====
    Equity
    Share capital 228 80
    Retained earnings 378 138
    ——- ——
    606 218
    Non-current liabilities
    8% Debentures 40
    Current liabilities
    Payables 66 46
    —- —–
    672 304
    === ====
    The following information is relevant:
    a) The inventory of Veronica includes GHC16,000 of goods purchased from Augustine at cost plus 25% profit mark-up
    b) On 1 June 2012, a piece of Vero‘s plant with a carrying value of GHC60,000 had a fair value of GHC96,000. It had a remaining life of 10 years as at this date
    c) Vero earned a profit after tax of GHC18,000 in 2012 and did not pay any dividend during the year.
    d) The debenture in Vero‘s books represents monies borrowed from Augustine on I June 2012. Augustine has recognized this loan as a non-current investment.
    e) Included in Augustine‘s receivable is GHC8,000 relating to inventory sold to Vero since acquisition. Vero raised a cheque for GHC5,000 and sent it to Augustine on 29 December 2012. Augustine did not receive this cheque until 5 January 2013.
    f) It is the group‘s policy to value NCI at acquisition using the proportion of net asset method. Goodwill is impaired by GHC10,200 at the reporting date.
    Required:
    Prepare the consolidated statement of financial position of Augustine group as at 31 December 2012

    March 21, 2024 at 8:00 am #703243
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54705
    • ☆☆☆☆☆

    Why have you posted the same question twice?

    See my reply to your other posting of this.

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • The topic ‘help solve corporate reporting question below (Financial Position)’ is closed to new replies.

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