FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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P acquired 80% of the capital of S on 1 January 2021. At the year end 31 December 2021 the
two companies have the following statements of financial position:
P
Investment in S
Other assets
Share capital
Share premium
Retained earnings
1 January 2021
Profit for year 2021
Notes
1.
2.
$
4,000
8,000
12,000
6,000
4,000
2,000
6,000
12,000
S
$
4,000
4,000
1,000
500
1,500
1,000
4,000
2,500
Non-controlling interest is valued at fair value on acquisition, which was $2,300 on 1
January 2021.
There has been no change in S's share capital during the year.
Required:
Prepare the consolidated statement of financial position of the P group as at 31 December
2021.
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Transcribed Image Text:P acquired 80% of the capital of S on 1 January 2021. At the year end 31 December 2021 the two companies have the following statements of financial position: P Investment in S Other assets Share capital Share premium Retained earnings 1 January 2021 Profit for year 2021 Notes 1. 2. $ 4,000 8,000 12,000 6,000 4,000 2,000 6,000 12,000 S $ 4,000 4,000 1,000 500 1,500 1,000 4,000 2,500 Non-controlling interest is valued at fair value on acquisition, which was $2,300 on 1 January 2021. There has been no change in S's share capital during the year. Required: Prepare the consolidated statement of financial position of the P group as at 31 December 2021.
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