ACCA FA · Guided practice (Show me how)
Chapter 22: Group Accounts – The Consolidated Statement of Financial Position (1)
M and N - the consolidated statement of financial position
M acquired 100% of the share capital of N on 1 January 2016 for $42,000, at which date the retained earnings of N amounted to $22,000.
At 31 December 2019 the companies' Statements of Financial Position were as follows.
Working 1 - goodwill on acquisition
Calculate the goodwill arising on the acquisition of N.
Working 2 - group retained earnings
Calculate the consolidated retained earnings at 31 December 2019.
The consolidated statement of financial position
Prepare the consolidated statement of financial position of the M group at 31 December 2019.
Opening this exercise…