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- A Limited acquired control with the acquisition of an 80% interest in B Limited for R1 100 000 on 1 January 20.8. On this date the share capital of B Limited was R200 000 consisting of 200 000 ordinary shares and the retained earnings amounted to R800 000. The fair value of the net assets of B Limited amounted to R1 000 000 on 1 January 20.8. The market value of the shares of B Limited on 1 January 20.8 amounted to R7 per share. Non-controlling interests in the acquiree measured at fair value (full goodwill method) The Non- controlling interest will amount to________. Select one: a. R80 000 b. R280 000 c. R300 000 d. R200 000P Ltd acquired control with the acquisition of an 80% interest in S Ltd for R1 100 000 on I January 2008. On this date the share capital of S Ltd was R200 000 consisting of 200 000 ordinary shares and the retained earnings amounted to R800 000. The fair value of the net assets of S Ltd amounted to R1 000 000 on 1 January 2008 Non- controlling interests in the acquire are measured as the Non-controlling interest’s proportionate share of the acquiree’s net identifiable assets How much will be recognised as goodwill in the pro forma consolidation at acquisition? Select one: a. R300 000 b. R200 000 c. R240 000 d. R800 000P Ltd acquired control with the acquisition of an 80% interest in S Ltd for R1 100 000 on I January 2008. On this date theshare capital of S Ltd was R200 000 consisting of 200 000 ordinary shares and the retained earnings amounted toR800 000. The fair value of the net assets of S Ltd amounted to R1 000 000 on 1 January 2008Non- controlling interests in the acquire are measured as the Non-controlling interest’s proportionate share of theacquiree’s net identifiable assetsHow much goodwill will be attributable to the Non-controlling interest at acquisition?Select one:a.RNILb.R60 000c.R200 000d.R300 000
- P Ltd acquired control with the acquisition of an 80% interest in S Ltd for R1 100 000 on I January 2008. On this date the share capital of S Ltd was R200 000 consisting of 200 000 ordinary shares and the retained earnings amounted to R800 000. The fair value of the net assets of S Ltd amounted to R1 000 000 on 1 January 2008 Non- controlling interests in the acquire are measured as the Non-controlling interest’s proportionate share of the acquiree’s net identifiable assets How much is the Non-controlling interest? Select one: a. R160 000 b. R200 000 c. R40 000 d. R260 000The Elf Co. acquired a 60% interest in the Pea Co. when Pea's equity comprised share capital of P100,000 and retained earnings of P150,000. Pea's current statement of financial position shows share capital of P100,000, a revaluation reserve of P75,000 and retained earnings of P300,000. Under IAS 27, Consolidated and Separate Financial Statements, what amount in respect of the non-controlling interest should be included in Elf Co.'s consolidated statement of financial position?4. A Co. acquired 60% of the outstanding ordinary shares of B Co. on January 2, 2022. A Co. acquired it at book value which is the same as its fair value at the date of acquisition. Statements of Comprehensive Income of A Co. & B Co. for 2022 are as follows: А Со. P218,750 131,250 P87,500 26,250 P61,250 В Со. P87,500 52,500 P35,000 13,125 P21,875 - 0 - P21,875 Net Sales Cost of Sales Gross Profit Operating Expenses Operating Income Dividend Revenue 14,000 P75,250 Net Income B Co. made sales to A Co. of P28,000 in 2021 and P42,000 in 2022. A Co. reported inventory on December 31, 2021 amounting to P17,500 of which 20% comes from B Co. and inventory on December 31,2022 amounting to P21,000 of which 30% comes B Co. A Co. uses 30% mark-up on cost and B Co. uses 25% mark-up on cost for their selling prices. A Co. & B Co. declared and paid dividends in 2022 amounting to P21,000 and P17,500, respectively. On January 1, 2022, B Co. has ordinary shares of P80,000; Share Premium of P30,000 and…
- Mokwena Limited acquired 48% investment in Masibi Limited at R100 000. At the date of acquisition, which is 31 March2016, Masibi Limited’s statement of financial position showed the following balances:Non-current assets R692 000Current assets R44 000Non-current liabilities R268 000Current liabilities R218 000Mokwena Limited applies equity accounting for all its investments in associates and joint ventures. The financial year-endfor Mokwena Limited is on 31 March of each year.What amount will be recorded as investment in associate in Mokwena Limited’s statement of financial position as at 31March 2016?Mokwena Limited acquired 48% investment in Masibi Limited at R100 000. At the date of acquisition, which is 31 March2016, Masibi Limited’s statement of financial position showed the following balances:Non-current assets R692 000Current assets R44 000Non-current liabilities R268 000Current liabilities R218 000Mokwena Limited applies equity accounting for all its investments in associates and joint ventures. The financial year-endfor Mokwena Limited is on 31 March of each year.What is Mokwena Limited’s share of the net assets in Masibi Limited?Select one:a.R250 000b.R353 280c.R120 000d.R100 000On 01 January 2018 at acquisition P Ltd acquired 80% interest in S Ltd. S Ltd had a retained earnings that amount to 250 000 on 01 January 2020 since the acquisition, S Ltd had a retained earnings that amounted to 375 560. The financial year ends on 31 December 2020 How much will be Non- Controlling interest on retained earning since the acquisition, at the beginning of the year? ( ceteris paribus) Select one: A. 25112 B. 2512 C. 50000 D. 75000
- Ditinti Limited acquired 80% (and control) of the shares of Chai Limited at 1 March 2016 when the fair value of the netassets of Chai Limited was R250 000. What is the value of the non-controlling interests in Chai Limited?Select one:a.R250 000b.R200 000c.R80 000d.R50 000PROBLEM I. P Corporation acquired an 80% interest in S Company on January 1, 2020 for P425,000. On this date, the share capital and retained earnings of two companies were as follows: P Corporation S Company Share Capital P530,000 P175,000 35,000 380,000 The assets and liabilities of S Company were stated at their fair values when Pacquired its 80% interest and the fair value method was used to initially measure the NCI. Net income and dividends for 2020 for the affiliated companies were: Р Согрoration Retained Earnings S Company Net Income P105,000 P31,500 Dividends Declared End of the year valuation indicates P2,400 impairment in goodwill (partial). 1. Consolidated retained earnings at December 31, 2020. 2. Goodwill in the consolidated balance sheet at December 31, 2020. 63,000 17,500H plc is a holding company with a 70% interest in its subsidiary S plc. The following is an extract from the Statements of Financial Position of the two companies as at the end of their most recent financial year: Ordinary shares of £1 Retained earnings H plc £m 211 157 S plc £m 53 43 H plc acquired its interest in S plc for £303m when S plc's retained earnings were £47m and the fair value of the non-controlling interest in S plc was £49m. At the date of acquisition all the assets of S plc were agreed to be reported at their fair value. However, there were unrecognised internally generated patents and trademarks in S plc with a fair value of £19. Calculate the amount for goodwill arising on the acquisition of S plc. Enter your answer as £m correct to 1 decimal place.