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FAConsolidated Statement of financial positions is not the same?

Former userFormer user6y ago
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 63,000 The 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?
John MoffatJohn MoffatTutor6y ago#1
There 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.
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