P Co acquired 75% of the ordinary shares of S Co on 1 September 20X5. At that date the fair value of S Co's non-current assets was $23,000 greater than their net book value, and the balance of retained earnings was $21,000. The statements of financial position of both companies at 31 August 20X6 are given below. S Co has not incorporated any revaluation in its books of account. Non-controlling interest is valued at full fair value which was deemed to be $18,000 at the acquisition date. P CO STATEMENT OF FINANCIAL POSITION AS AT 31 AUGUST 20X6 Assets Non-current assets Property, plant and equipment Investment in S Co at cost Current assets Total assets Equity and liabilities Equity Ordinary shares of $1 each Retained earnings Current liabilities Total equity and liabilities S CO STATEMENT OF FINANCIAL POSITION AS AT 31 AUGUST 20X6 Assets Property, plant and equipment Current assets Total assets Equity and liabilities Equity Ordinary shares of $1 each Retained earnings Current liabilities Total equity and liabilities $ Required Prepare P Co's consolidated statement of financial position as at 31 August 20X6. 63,000 51,000 80,000 96,000 20,000 41,000 114,000 82,000 196,000 176,000 20,000 196,000 LA 28,000 43,000 71,000 61,000 10,000 71,000 If S Co had revalued its non-current assets at 1 September 20X5, an addition of $3,000 would have been made to the depreciation charged for 20X5/X6.
P Co acquired 75% of the ordinary shares of S Co on 1 September 20X5. At that date the fair value of S Co's non-current assets was $23,000 greater than their net book value, and the balance of retained earnings was $21,000. The statements of financial position of both companies at 31 August 20X6 are given below. S Co has not incorporated any revaluation in its books of account. Non-controlling interest is valued at full fair value which was deemed to be $18,000 at the acquisition date. P CO STATEMENT OF FINANCIAL POSITION AS AT 31 AUGUST 20X6 Assets Non-current assets Property, plant and equipment Investment in S Co at cost Current assets Total assets Equity and liabilities Equity Ordinary shares of $1 each Retained earnings Current liabilities Total equity and liabilities S CO STATEMENT OF FINANCIAL POSITION AS AT 31 AUGUST 20X6 Assets Property, plant and equipment Current assets Total assets Equity and liabilities Equity Ordinary shares of $1 each Retained earnings Current liabilities Total equity and liabilities $ Required Prepare P Co's consolidated statement of financial position as at 31 August 20X6. 63,000 51,000 80,000 96,000 20,000 41,000 114,000 82,000 196,000 176,000 20,000 196,000 LA 28,000 43,000 71,000 61,000 10,000 71,000 If S Co had revalued its non-current assets at 1 September 20X5, an addition of $3,000 would have been made to the depreciation charged for 20X5/X6.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Consolidated financial position question
Transcribed Image Text:P Co acquired 75% of the ordinary shares of S Co on 1 September 20X5. At that date the fair value of S
Co's non-current assets was $23,000 greater than their net book value, and the balance of retained
earnings was $21,000. The statements of financial position of both companies at 31 August 20X6 are
given below. S Co has not incorporated any revaluation in its books of account. Non-controlling interest is
valued at full fair value which was deemed to be $18,000 at the acquisition date.
P CO
STATEMENT OF FINANCIAL POSITION AS AT 31 AUGUST 20X6
Assets
Non-current assets
Property, plant and equipment
Investment in S Co at cost
Current assets
Total assets
Equity and liabilities
Equity
Ordinary shares of $1 each
Retained earnings
Current liabilities
Total equity and liabilities
S CO
STATEMENT OF FINANCIAL POSITION AS AT 31 AUGUST 20X6
Assets
Property, plant and equipment
Current assets
Total assets
Equity and liabilities
Equity
Ordinary shares of $1 each
Retained earnings
Current liabilities
Total equity and liabilities
63,000
51,000
Required
Prepare P Co's consolidated statement of financial position as at 31 August 20X6.
80,000
96,000
$
20,000
41,000
$
114,000
82,000
196,000
176,000
20,000
196,000
$
28,000
43,000
71,000
61,000
10,000
71,000
If S Co had revalued its non-current assets at 1 September 20X5, an addition of $3,000 would have been
made to the depreciation charged for 20X5/X6.
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