- December 1, 2021 at 10:12 pm #642243student404Member
- Topics: 2
- Replies: 2
Please may you help me with the question below. I don’t understand why we don’t take the whole of or atleast 60% of Frame Co’s revaluation surplus balance of $4,400 in the consolidated statement of financial position of Picture. (Answer:B)
On 1 October 20X8, Picture Co acquired 60% shares in Frame Co. At 1 April 20X8, the credit balances on the
revaluation surpluses relating to Picture Co and Frame Co’s equity financial asset investments stood at
$6,400 and $4,400 respectively.
The following extract was taken from the financial statements for the year ended 31 March 20X9:
Picture Co Frame Co
Other comprehensive income: loss on fair value of equity financial asset
investments (1,400) (800)
Assume the losses accrued evenly throughout the year.
What is the amount of the revaluation surplus in the consolidated statement of financial position of Picture
Co as at 31 March 20X9?
D $9,160December 11, 2021 at 11:19 am #643879P2-D2Keymaster
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I do not like to just answer questions for students without having seen some sort of attempt being made first. If you attempt the question then I’ll happily help you with then getting the right answer and pointing out where you have gone wrong.
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