As at 31 December 20x8, A Ltd's netassets are represented by share capitalof $500 million and retained profit of$500 million, B Ltd's net assets arerepresented by share capital of $200million and retained profit of $500million, and C Ltd's net assets arerepresented by share capital of $100million and retained profit of $300million. B Ltd acquired 70% of C Ltd in20x5 when C Ltd's retained profit was$200 million. A Ltd acquired 80% of BLtd in 20x6 when B Ltd's retainedprofit was $400 million and C Ltd'sretained profit was $250 million. Theamount of "non-controlling interest” inA Ltd's consolidated statement offinancial position as at 31 December20x8 should be:$260 million.$274 million.$270 million.None of the listed choices.$267 million.

In case of chain holding, in the parent company's book the record of all the subsidiaries are kept…

Answered: As at 31 December 20x8, A Ltd's net…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

House Plc owns 80% of the issued share capital of Window Plc and 25% of the issued share capital of Door Plc. The revenues for the year are as follows:House Plc GH¢1,500,000Window Plc GH¢1,000,000Door Plc GH¢160,000What amount for revenue should appear in the consolidated statement of profit or loss for the year?
H plc owns 80% of the the voting shares of S plc. S plc is a subsidiary of H plc. The most recent income statements of each company include the following entries: H plc S plc £ £ Income from non-current asset 468,000 396,000 investments During the financial year S plc paid ordinary dividends of £163,000 to its shareholders. What figure will be reported in the Consolidated Income Statement of H plc for 'Income from non-current asset investments'?
On 1 July 2020, Sky Ltd acquired 70% of the share capital (ex. div.) of Jim Ltd for $500,000. At that date, the relevant balances in the records of Jim Ltd were: Share capital General reserve Retained earnings Dividend payable S 434,000 35,000 126,000 14,000 At the date of acquisition all assets and liabilities of Jim Ltd were recorded in the accounting records at amounts equal to their fair values with the exception of the following assets: Carrying amount Fair value Land Machine 56,000 30,800 Land was sold on 1 May 2023 for $77,000. $ 67,200 49,000 The cost of the Machine was $58,800 and had a further 5-year life as at the date of acquisition. Jim Ltd had reported a Contingent liability at 1 July 2020 in relation to claims by customers for damaged goods. Sky Ltd placed a fair value of $12,600 on these claims at acquisition date. This claim was settled on 1 April 2023 for $7,000. Additional information: a) On 1 March 2023, Jim Ltd purchased inventory from Sky Ltd for $25,200,…
Sailor Berhad acquired all the shares in Mon Berhad on 31 December 2022 for a cost of RM900,000. The statement of financial poistion of both companies for the year ended 31 December 20221 were as follows: Non-current assets Investment in Mon Berhad at cost Current assets Ordinary share Retained earnings Current liabilities Sailor Berhad RM'000 1,600 900 380 2,880 1,000 1,580 300 2,880 Mon Berhad RM'000 750 300 1,050 500 300 250 1,050 Required: Explain by way of calculation on how to prepare the consolidated statement of financial position for the group as at 31 December 2022.
The Passers Co. acquired 70% of the net assets of Failures Co. for P1,100,000. The assets of Failures Co. have a book value of P1,200,000 and a fair market value of P1,300,000; its liabilities are P200,000. What is the amount of minority interest in the stockholders’ equity section of the consolidated balance sheet?
Nick Ltd acquired 100% of the issued capital of Wing Ltd on 1 July 2011 for $270000. The statements of financial position of the companies immediately after the acquisition are provided below. All assets have been reported following fair value. Statement of Financial Position For the year ended 1 July 2011 Nick Ltd Wing Ltd Shareholders' equity Share capital General reserve Retained earnings Total shareholders' equity 450,000 45,000 140,000 635,000 180,000 25,000 20,000 225,000 Assets Current assets Cash at Bank Accounts Receivable 50,000 20,000 100.000 170,000 30,000 10,000 25.000 65,000 Inventory Non-current assets Investment in Wing Ltd Land Plant & Equipment 270,000 250,000 100,000 620.000 790.000 200,000 80.000| 280.000 345.000 Total assets Liabilities Current liabilities Accounts Payable Interest Payable 40,000 10,000 15.000 L.000 55,000 18,000 Non-current liabilities Bank loan Total liabilities Net assets 100,000 155,000 635,000 102,000 120,000 225,000 Required 1. Calculate…
Calculate share of profit of the members of the parent entity and of minority interests if Alpha Ltd acquired 80% of the shares in X Ltd and 70% of the shares in Y Ltd. The profits recovered by each of the companies of the current year are as follows Net Profit for the current year(m) Alpha Ltd 100 X Ltd 40 Y Ltd -10 A.Profit for members of parent entity is $125m and profit for minority interest is $15m. B. Profit for members of parent entity is $100m and profit for minority interest interest is $30m. C. Profit for members of parent entity is $125m and profit for minority interest is $25m. D. Profit for members of parent entity is $130m and profit for minority interest is $0. E. None of the options provided. 2.The individual discount model is considered amongst analysts as most appropriate for share valuation under which of the following situations: A.When valuing shares from the perspective of a small shareholder and…
On 1 July 2020, Kent Ltd acquired all the share capital (Ex-dividend) of Sub Ltd for $500,000. The financial statements of Kent Ltd showed the equity of Sub Ltd at that date to be: Share capital — 60 000 $5 shares $300 000 General reserve 40 000 Retained earnings 90 000 All the assets and liabilities of Sub Ltd were recorded at amounts equal to their fair values at that date except the following: Carrying Amount Fair value Land $150 000 $170 000 Plant (Cost $400 000) $300 000 $350 000 Inventory $75 000 $80 000 Additional information: On 10 September 2020, Sub Ltd paid interim cash dividend of $10,000. At acquisition date, 1 July 2020, Sub Ltd has an unrecorded Patent that has a fair value of $20,000, and a Contingent Liability that has a fair value of $15 000. Plant has expected to have a further 5-year life. The tax rate…
Odom Ltd purchased a 30% shareholding in Bryant Ltd on 1 Jan 20X7 for $60 000. This purchase resulted in Odom Ltd having significant influence over Bryant Ltd. Bryant's assets were recorded at fair values and its owners' equity, totalling $180 000, was: Share capital $80 000 Reserves $60 000 Retained profits $40 000 During 20X7 Bryant Ltd reported profit of $100 000, from which a dividend of $60 000 was paid. Also, during the year, Bryant revalued its assets upwards by $50 000, and sold inventories to Willams Ltd which is the subsidiary of Odom. Bryant made a profit of $4,000. Half of the inventories were still held by Willams by the year-end. Odom Ltd has an 80% equity interest in Willams Ltd. Required: Prepare journal entries for Odom Ltd to account for its investment in Bryant Ltd using the Equity Method. Use the Reclassification Method to account for the profit and dividends that Odom shares from Bryant. (Using the provided journal entry template to enter your answer;…
Qw.31.
Arya Ltd acquired 25% of the voting shares of Brya Ltd on 1 July 2014 for $80,000. At the date of acquisition the shareholders equity of Brya is as follows: Share Capital 220,000 Retained earnings 100,000 320,000 All assets are recorded at their fair value The following information relates to Brya Ltd: Profit /loss after tax as of 30/6/15 are $60,000, dividend paid $20,000, ARR balance $2,000. Required: (a) Prepare the equity accounting journals at 1 July 2014 and 30 June 2015 assuming that Arya does not prepare consolidated financial statements. (b) Calculate Value of equity for Brya Ltd.
On January 1, 2018, Parent Co. acquired 80% of the ordinary shares of Subsidiary Co. for P1,000,000. At the time of acquisition, Subsidiary's Ordinary shares, share premium and retained earnings were P100,000, P400,000 and P500,000 respectively. The identifiable assets and liabilities of the Subsidiary were fairly valued. The assets of the Subsidiary included goodwill of P50,000. The following income statement data were prepared by Parent and Subsidiary on December 31, 2019: Parent Subsidiary 400,000 750,000 50,000 15,000 150,000 300,000 150,000 50,000 Sales Other income Cost of goods sold Operating expenses During 2019, the Subsidiary declared dividends of P50,000. The dividend received by the parent was recorded as part of dividend income (included in other income). On January 1, 2019, Parent purchaseda machine from the subsidiary for P40,000. This was carried at Subsidiary's books at P25,000. The remaining life of the machine was 5 years. Since the purchase date, Subsidiary Co.…

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS