Consolidated Financial Statements

Hunt acquired 80% of Safari on 1 October 20X5. At that date, Safari had $1 SC of 5,000,000 shares and SP of $1,000,000. In exchange, Hunt issued $1 five equity shares for every four shares acquired. At 1 October 20X5, the FV of Hunt’s equity shares was $2.50/share & the FV of NCI in Safari was $2,000,000. The SoP&L for the year ended 30 June 20X6 for Hunt and Safari were as follows: Hunt Safari $000 $000 Revenue 21,250 14,940 CoS (5,310) (8,300) GP 15,940 6,640 Distribution costs (1,300) (960) Admin expenses (1,150) (680) Profit before tax 13,490 5,000 Income tax charge (3,230) (1,000) Profit after tax 10,260 4,000 The following information is relevant to the preparation of the consolidated financial statements: • On 1 July 20X5, the retained earnings of Safari were $2,000,000. The profit after tax of Safari for the year ended 30 June 20X6 accrued evenly throughout the year. • At the acquisition date, the fair value of a buildings owned by Safari exceeded their carrying value by $1,000,000. At that date, the properties had a remaining estimated useful life of 30 years and were still owned at 30 June 20X6. Any additional depreciation charge should be charged to cost of sales. • During the post-acquisition period, Hunt sold goods to Safari for $500,000 which included a mark-up on cost of twenty-five per cent. One quarter of the goods remain in the inventory of Safari at 30 June 20X6. Required: Prepare the group statement of profit or loss and Statement of financial position for the Hunt group for the year ended 30 June 20X6.