According to IFRS 10 one of the first adjustments which should be made in consolidated statements is the elimination of the investment in the parent’s books and the owners’ equity section in the subsidiary’s books as at the date of acquisition Statements of Financial Position as at 30 June 2008: A LtdB LtdASSETSRRInvestment in B Ltd: 10 000 Ordinary shares at fair value10 000 -Cash and cash equivalents 10 00010 000 20 00020 000EQUITY AND LIABILITIES Share capital-20 000 ordinary shares 20 000 --10 000 ordinary shares-10 000 20 00010 000 In A Ltd group consolidated statement of financial position how much will be recognised as share capital?Select one:a. R10 000b. R40 000c. R30 000d. R20 000

Consolidated financial statement is a statement in which we will consolidate the financial…

Answered: According to IFRS 10 one of the first…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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According to IFRS 10 one of the first adjustments which should be made in consolidated statements is the elimination of the investment in the parent’s books and the owners’ equity section in the subsidiary’s books as at the date of acquisition

Statements of Financial Position as at 30 June 2008:

	A Ltd	B Ltd
ASSETS	R	R
Investment in B Ltd: 10 000 Ordinary shares at fair value	10 000	-
Cash and cash equivalents	10 000	10 000
	20 000	20 000
EQUITY AND LIABILITIES
Share capital -20 000 ordinary shares	20 000	-
-10 000 ordinary shares	-	10 000
	20 000	10 000

In A Ltd group consolidated statement of financial position how much will be recognised as share capital?

Select one:

a. R10 000

b. R40 000

c. R30 000

d. R20 000

Definition Definition Financial journal in which only cash-related transactions are recorded. Cash transactions are posted chronologically in the cash book, which is also called a subsidiary book. All the cash receipts are recorded on the debit side and all the cash payments are recorded on the credit side. An important point to remember is that the cash book never shows a credit balance; only a debit balance is shown in the cash book.

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