What is the total amount of non-controlling interests?
Financial information at 30 June 2020 of Great Ltd and its subsidiary company, Wall Ltd, is shown below.
At 1 July 2017, the date Great Ltd acquired its 80% shareholding in Wall Ltd, all the identifiable assets and liabilities of Wall Ltd were at fair value except for the following assets:
|
|
|
Carrying amount |
|
Fair value |
|
Plant (cost $75,000) |
|
$49,000 |
|
$55,000 |
|
Land |
|
29,000 |
|
37,000 |
The plant has an expected life of 10 years, with benefits being received evenly over that period. Differences between carrying amounts and fair values are adjusted on consolidation. The land on hand at 1 July 2017 was sold on 1 February 2018 for $40,000. Any valuation reserve in relation to the land is transferred on consolidation to retained earnings.
Great Ltd uses the full
|
|
|
Great Ltd |
|
Wall Ltd |
||||
|
Sales revenue |
|
$ |
316,000 |
|
|
$ |
220,000 |
|
|
Other revenue: |
|
|
|
|
|
|
|
|
|
Debenture interest |
|
|
5,000 |
|
|
|
— |
|
|
Management and consulting fees |
|
|
5,000 |
|
|
|
— |
|
|
Dividend from Wall Ltd |
|
|
12,000 |
|
|
|
— |
|
|
Total revenues |
|
|
338,000 |
|
|
|
220,000 |
|
|
Cost of sales |
|
|
130,000 |
|
|
|
85,000 |
|
|
Manufacturing expenses |
|
|
90,000 |
|
|
|
60,000 |
|
|
Depreciation on plant |
|
|
15,000 |
|
|
|
15,000 |
|
|
Administrative |
|
|
15,000 |
|
|
|
8,000 |
|
|
Financial |
|
|
11,000 |
|
|
|
5,000 |
|
|
Other expenses |
|
|
14,000 |
|
|
|
12,000 |
|
|
Total expenses |
|
|
275,000 |
|
|
|
185,000 |
|
|
Profit before tax |
|
|
63,000 |
|
|
|
35,000 |
|
|
Income tax expense |
|
|
(25,000 |
) |
|
|
(17,000 |
) |
|
Profit |
|
|
38,000 |
|
|
|
18,000 |
|
|
Retained earnings (1/7/19) |
|
|
50,000 |
|
|
|
45,000 |
|
|
|
|
|
88,000 |
|
|
|
63,000 |
|
|
Transfer to general reserve |
|
|
3,000 |
|
|
|
— |
|
|
Interim dividend paid |
|
|
10,000 |
|
|
|
10,000 |
|
|
Final dividend declared |
|
|
10,000 |
|
|
|
5,000 |
|
|
|
|
|
23,000 |
|
|
|
15,000 |
|
|
Retained earnings (30/6/20) |
|
|
65,000 |
|
|
|
48,000 |
|
|
General reserve |
|
|
50,000 |
|
|
|
10,000 |
|
|
Other components of equity |
|
|
13,000 |
|
|
|
10,000 |
|
|
Share capital |
|
|
300,000 |
|
|
|
100,000 |
|
|
Debentures |
|
|
200,000 |
|
|
|
100,000 |
|
|
Current tax liability |
|
|
25,000 |
|
|
|
17,000 |
|
|
Dividend payable |
|
|
10,000 |
|
|
|
5,000 |
|
|
|
|
|
— |
|
|
|
7,000 |
|
|
Other liabilities |
|
|
90,000 |
|
|
|
12,000 |
|
|
|
|
$ |
753,000 |
|
|
$ |
309,000 |
|
|
Financial assets |
|
$ |
50,000 |
|
|
$ |
60,000 |
|
|
Debentures in Wall Ltd |
|
|
100,000 |
|
|
|
— |
|
|
Shares in Wall Ltd |
|
|
131,600 |
|
|
|
— |
|
|
Plant (cost) |
|
|
120,000 |
|
|
|
102,000 |
|
|
|
|
|
(65,000 |
) |
|
|
(55,000 |
) |
|
Other depreciable assets |
|
|
76,000 |
|
|
|
55,000 |
|
|
Accumulated depreciation |
|
|
(40,000 |
) |
|
|
(25,000 |
) |
|
Inventory |
|
|
90,000 |
|
|
|
85,000 |
|
|
|
|
|
85,400 |
|
|
|
30,000 |
|
|
Land |
|
|
201,000 |
|
|
|
57,000 |
|
|
Dividend receivable |
|
|
4,000 |
|
|
|
— |
|
|
|
|
$ |
753,000 |
|
|
$ |
309,000 |
|
Additional information
- At the acquisition date of 80% of its issued shares by Great Ltd, the equity of Wall Ltd was:
|
Share capital (100,000 shares) |
|
$100,000 |
|
General reserve |
|
3,000 |
|
Retained earnings |
|
37,000 |
- Inventory on hand of Wall Ltd at 1 July 2019 included a quantity priced at $10,000 that had been sold to Wall Ltd by its parent. This inventory had cost Great Ltd $7,500. It was all sold by Wall Ltd during the year.
- In Great Ltd’s inventory at 30 June 2020 were various items sold to it by Wall Ltd at $5,000 above cost.
- During the year, intragroup sales by Wall Ltd to Great Ltd were $60,000. It was also learned that Wall Ltd had sold to Great Ltd an item from its inventory for $20,000 on 1 January 2019. Great Ltd had treated this item as an addition to its plant and machinery. The item was put into service as soon as received by Great Ltd and depreciation charged at 20% p.a. The item had been fully imported by Wall Ltd at a landed cost of $15,000.
- Management and consulting fees derived by Great Ltd were all from Wall Ltd and represented charges made for administration $2,200 and technical services $2,800. The latter were charged by Wall Ltd to manufacturing expenses.
- All debentures issued by Wall Ltd are held by Great Ltd.
- Other components of equity relate to movements in the fair values of the financial assets. The balance of this account at 1 July 2019 was $10,000 (Great Ltd) and $8,000 (Wall Ltd).
- The tax rate is 30%.
Q - What is the total amount of non-controlling interests?
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