FAC3704 exam pack aswers

TION 1 (SUGGESTED SOLUTION) Part (a)(i): Investment in associate (Limited): At acquisition: Investment in Limited at cost price (ordinary shares) – given Investment in Limited at cost price (preference shares) – given Since acquisition: Retained earnings ((-245 000 – 20 000) x 40%) Correction (106 000 – 102 000(cost price)) Current year: Profit for the period ((779 500 + 18 000 – 332 200 – 176 884) x 40%) Correction – see comment 1 Dividends paid (30 000 x 40%) Intragr...