H bought 90% of the equity share capital of S, two years ago on 1January 20X2 when the retained earnings of S stood at $5,000. Statements of financial position at the year end of 31 December 20X3 areas follows: S transferred goods to H at a transfer price of $18,000 at a mark-up of 50%. Two-thirds remained in inventory at the year end. The current account in H and S stood at $22,000 on that day. The H group uses the fair value method to value the non-controlling interest. The fair value of the non-controlling interest at acquisition was $4,000 Prepare the consolidated statement of financial position at 31/12/X3.
H bought 90% of the equity share capital of S, two years ago on 1January 20X2 when the retained earnings of S stood at $5,000. Statements of financial position at the year end of 31 December 20X3 areas follows: S transferred goods to H at a transfer price of $18,000 at a mark-up of 50%. Two-thirds remained in inventory at the year end. The current account in H and S stood at $22,000 on that day. The H group uses the fair value method to value the non-controlling interest. The fair value of the non-controlling interest at acquisition was $4,000 Prepare the consolidated statement of financial position at 31/12/X3.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
100%
H bought 90% of the equity share capital of S, two years ago on 1January 20X2 when the
S transferred goods to H at a transfer price of $18,000 at a mark-up of 50%. Two-thirds remained in inventory at the year end. The current account in H and S stood at $22,000 on that day.
The H group uses the fair value method to value the non-controlling interest. The fair value of the non-controlling interest at acquisition was $4,000
Prepare the consolidated statement of financial position at 31/12/X3.
Transcribed Image Text:Non-current assets:
Property, plant & equipment
Investment in S at cost
Current assets:
Inventory
Receivables
Bank
Equity:
Share capital
Retained earnings
Non-current liabilities
Current liabilities
H
S
$000 $000 $000 $000
90
110
10
100
34
134
210
344
15
159
174
120
50
344
20
25
5
30
30
50
80
5
31
36
28
16
80
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