ACCA F7 - Financial Reporting Workbook Notes For Grade A

F7 Workbook Q & A www.mapitaccountancy.com




ACCA F7 - Financial
Reporting

Workbook




1

,F7 Workbook Q & A www.mapitaccountancy.com




Group Accounts




2

,F7 Workbook Q & A www.mapitaccountancy.com


Illustration 1

Almeria Murcia

Non Current Assets

Tangible 100 100

Investment in Murcia 300



Current Assets

Inventory 40 200

Receivables 60 100

Cash 200 200

700 600



Ordinary Shares 160 100

Accumulated Profits 240 200

Equity 400 300



Non Current Liabilities 100 200

Current Liabilities 200 100

700 600



Additional Information

Almeria today acquired all the shares in Murcia for $300m.

The Fair Value of the NCI at acquisition was 0.

Required

Prepare the consolidated statement of financial position for the Almeria group




3

, F7 Workbook Q & A www.mapitaccountancy.com


Pro-Forma

Working 1 - Group Structure

Almeria




Murcia


Date Acquired

Parent Share

NCI




Working 2 - Equity Table
At Acquisition At Year End

Share Capital

Accumulated Profits




Working 3 - Goodwill



Cost of Parent Investment

Fair Value of NCI at acquisition

Less net assets at acquisition (W2)



Goodwill



4