Forums › ACCA Forums › ACCA FA Financial Accounting Forums › consolidated statement of financial position
- This topic has 2 replies, 3 voices, and was last updated 10 years ago by Ngu.
- AuthorPosts
- October 27, 2013 at 7:20 pm #143873
Peace ltd acquired 450,000 ordinary shares of Happy ltd on 1st January 2011 for $1,540,000. At that date the balance on the retained earnings of Happy ltd was a credit of $140,000 and the balance on the capital surplus was a credit of $28,000. And there are some values for the stated capital, capital surplus and retained earnings for both companies. How do we solve this type of question?
October 27, 2013 at 8:42 pm #143884There are information lacking…..
December 7, 2013 at 6:02 am #1514081. Identify the group structure( what share of total assets was aquired and when) 450k/TotalShares
2. Identify the purchase consideration $1.54m (FVPC)
3. Identify fair value of NCI/ Its share of net assets (FVNCI)
4. Identify what was bought which is share capital, ratained earnings and some adjustments on assets eigther upwards or downwards (140k+28k+?+adj)
5. Work out Net assets of sub @ SOFP date.
6. Goodwill @ DOA = 3+2-4
7 workout group ret earnings = parent earnings + group share of changes in net assets of sub since DOA
8. Nci @DoSOFP = NCI%*netasset@DoSOFP
having all these figures then you slot them into your profoma SOFP. Goodluck, I hope this isnt too late - AuthorPosts
- You must be logged in to reply to this topic.