1. Sem 2 Q3
P Co owns S Co since its inception and sells goods to S Co regularly. The statements of
financial position of the two companies as at 31st of December 2017 are below:
P LTD £ S LTD £
Assets
Non-current Assets
PPE 35,000 45,000
Investment in S (40,000 shares) 40,000
75,000
Current Assets
Cash 1,000
Inventories 16,000 12,000
Receivables
S Co 2,000
Other 6,000 9,000
100,000 84,000
Equity
Share Capital
40,000 O.Shares - 40,000
70,000 O.Shares 70,000 -
Retained Earnings 16,000 19,000
86,000 59,000
Liabilities
Current Liabilities
Bank Overdraft 3,000
Payables: P Co 2,000
Payables: Other 14,000 2,000
100,000 66,000
Required: Prepare a consolidated statement of financial position as at 31st of December
2017
→→
Identify the cancelling items:
+ P Co’s investment in shares of S co (40,000) cancels with S Co’s share capital (40,000)
+ P Co’s asset receivables from S co (2000) cancels with S Co’s payables to P Co (2000)
→ Consolidated statement of financial position:
GBP
Assets
Non-current assets
PPE (= SUM both)
Current assets
Cash (prov.)
, Inventories (=SUM both)
Receivables: Others (=SUM both)
Total assets
Equity
Share capital (prov., ignore the cancelling item)
Retained Earnings (= SUM both)
Liabilities
Current liabilities
Bank overdraft (prov.)
Payables (=SUM both, ignore the cancelling item)
TOTAL
2. Sem 2 Q4:
P Co acquired 75% of the shares of S on 1st of January 2017 when S had retained earnings of
$15,000. The market price of S’ shares at the date of acquisition was $1.60. It is P Co’s policy
to value non-controlling interest at fair value at the date of acquisition. There is not
impairment on Goodwill. The statements of financial positions for P and S as at 31st of
December 2017 were as follows:
P LTD £ S LTD £
Assets
Non-current Assets
PPE 60,000 50,000
Investment in S 68,000
128,000 50,000
Current Assets 52,000 35,000
180,000 85,000
Equity
Share Capital 100,000 50,000
Retained Earnings 70,000 25,000
170,000 75,000
Liabilities
Current Liabilities 10,000 10,000
180,000 85,000
Required: Prepare a consolidated statement of financial position as at 31st of December
2017
→→
Group statement of financial position for ______
GBP
Assets
P Co owns S Co since its inception and sells goods to S Co regularly. The statements of
financial position of the two companies as at 31st of December 2017 are below:
P LTD £ S LTD £
Assets
Non-current Assets
PPE 35,000 45,000
Investment in S (40,000 shares) 40,000
75,000
Current Assets
Cash 1,000
Inventories 16,000 12,000
Receivables
S Co 2,000
Other 6,000 9,000
100,000 84,000
Equity
Share Capital
40,000 O.Shares - 40,000
70,000 O.Shares 70,000 -
Retained Earnings 16,000 19,000
86,000 59,000
Liabilities
Current Liabilities
Bank Overdraft 3,000
Payables: P Co 2,000
Payables: Other 14,000 2,000
100,000 66,000
Required: Prepare a consolidated statement of financial position as at 31st of December
2017
→→
Identify the cancelling items:
+ P Co’s investment in shares of S co (40,000) cancels with S Co’s share capital (40,000)
+ P Co’s asset receivables from S co (2000) cancels with S Co’s payables to P Co (2000)
→ Consolidated statement of financial position:
GBP
Assets
Non-current assets
PPE (= SUM both)
Current assets
Cash (prov.)
, Inventories (=SUM both)
Receivables: Others (=SUM both)
Total assets
Equity
Share capital (prov., ignore the cancelling item)
Retained Earnings (= SUM both)
Liabilities
Current liabilities
Bank overdraft (prov.)
Payables (=SUM both, ignore the cancelling item)
TOTAL
2. Sem 2 Q4:
P Co acquired 75% of the shares of S on 1st of January 2017 when S had retained earnings of
$15,000. The market price of S’ shares at the date of acquisition was $1.60. It is P Co’s policy
to value non-controlling interest at fair value at the date of acquisition. There is not
impairment on Goodwill. The statements of financial positions for P and S as at 31st of
December 2017 were as follows:
P LTD £ S LTD £
Assets
Non-current Assets
PPE 60,000 50,000
Investment in S 68,000
128,000 50,000
Current Assets 52,000 35,000
180,000 85,000
Equity
Share Capital 100,000 50,000
Retained Earnings 70,000 25,000
170,000 75,000
Liabilities
Current Liabilities 10,000 10,000
180,000 85,000
Required: Prepare a consolidated statement of financial position as at 31st of December
2017
→→
Group statement of financial position for ______
GBP
Assets
