Additional information For the year ended 30 June 2021, Kecil Ltd also reported a comprehensive income for the year of $800, which included gains on revaluation of land of $250 as the asset revaluation surplus in relation to the land. Required Prepare the consolidation worksheet entries for the preparation of the consolidated financial statements of Besar Ltd at 30 June 2021 in accordance to IFRS 10/AASB 10 Consolidated Financial Statements and IFRS 3/ AASB 3 Business Combinations. Workings and narrations are required.
On 1 July 2019, Besar Ltd acquired all of the shares (cum div.) of Kecil Ltd. The
|
Besar Ltd |
Kecil Ltd |
|||
|
Shares in Kecil Ltd |
367,000 |
- |
||
|
Plant |
230,000 |
320,000 |
||
|
|
(120,000) |
(40,000) |
||
|
Land |
- |
12,000 |
||
|
|
10,200 |
2,000 |
||
|
Inventory |
30,000 |
51,000 |
||
|
Receivables |
40,000 |
42,000 |
||
|
557,200 |
387,000 |
|||
|
Share capital |
280,000 |
200,000 |
||
|
General reserve |
44,000 |
33,000 |
||
|
|
131,200 |
134,000 |
||
|
Liabilities |
102,000 |
20,000 |
||
|
557,200 |
387,000 |
At the date of the business combination, all the identifiable assets and liabilities of Kecil Ltd had carrying amounts equal to their fair values except for:
|
Fair value |
|
|
Plant |
$300,000 |
|
Inventory |
31,000 |
|
Receivables |
43,000 |
The plant had a further useful life of 5 years. It was sold by Kecil Ltd on 1 January 2021 for $3,000.
By 30 June 2020, all the inventory was sold to entities outside the group at a loss of $5,000. The receivables of $43,000 has been collected by 30 June 2021.
One of the liabilities of Kecil Ltd at 1 July 2019 was dividend payable of $10,000.
Besar Ltd uses the partial goodwill method.
The tax rate is 30%.
Additional information
For the year ended 30 June 2021, Kecil Ltd also reported a comprehensive income for the year of $800, which included gains on revaluation of land of $250 as the asset revaluation surplus in relation to the land.
Required
Prepare the consolidation worksheet entries for the preparation of the consolidated financial statements of Besar Ltd at 30 June 2021 in accordance to IFRS 10/AASB 10 Consolidated Financial Statements and IFRS 3/ AASB 3 Business Combinations. Workings and narrations are required.
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