Below are the statements of financial position for Haggis and Stovies Haggis RM Stovies RM Non-current assets Tangible assets Investments: shares in Stovies at cost 33,000 12,500 20,000 Current assets 4,500 50,000 16,000 36,000 Share capital and reserves Equity shares of $1 each Share premium Retained earnings 10,000 5,000 6,000 21,000 4,000 13,000 17,000 Non-current liabilities 20,000 9,000 Current liabilities 9,000 50,000 10,000 36,000 On 1 January 2013, Haggis acquired 3,000 shares in Stovies. At that date the balance on Stovies' retained earnings was RM8,000. Non-controlling interest are valued at fair value, the fair value of the non-controlling interest on acquisition was RM3,800. Goodwill has been impaired by RM1,000 since acquisition.
Below are the statements of financial position for Haggis and Stovies Haggis RM Stovies RM Non-current assets Tangible assets Investments: shares in Stovies at cost 33,000 12,500 20,000 Current assets 4,500 50,000 16,000 36,000 Share capital and reserves Equity shares of $1 each Share premium Retained earnings 10,000 5,000 6,000 21,000 4,000 13,000 17,000 Non-current liabilities 20,000 9,000 Current liabilities 9,000 50,000 10,000 36,000 On 1 January 2013, Haggis acquired 3,000 shares in Stovies. At that date the balance on Stovies' retained earnings was RM8,000. Non-controlling interest are valued at fair value, the fair value of the non-controlling interest on acquisition was RM3,800. Goodwill has been impaired by RM1,000 since acquisition.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
Transcribed Image Text:Below are the statements of financial position for Haggis and Stovies
Haggis
RM
Stovies
RM
Non-current assets
Tangible assets
Investments: shares in Stovies at cost
33,000
12,500
20,000
Current assets
4,500
50,000
16,000
36,000
Share capital and reserves
Equity shares of $1 each
Share premium
Retained earnings
10,000
5,000
6,000
21,000
4,000
13,000
17,000
Non-current liabilities
20,000
9,000
Current liabilities
9,000
50,000
10,000
36,000
On 1 January 2013, Haggis acquired 3,000 shares in Stovies. At that date the balance on Stovies' retained
earnings was RM8,000. Non-controlling interest are valued at fair value, the fair value of the non-controlling
interest on acquisition was RM3,800. Goodwill has been impaired by RM1,000 since acquisition.
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