On 1 January 20X8, Coconut acquired 80% of the share capital of Rice for £100,000 when Rice had retained earnings of £30,000. At 31 December 20X9, the reserves of Coconut were £400,000 and for Rice they were £50,000. NCI is measured using the fair value method and goodwill has impaired by £21,600 to date. What amount should be presented in the consolidated statement of financial position at 31 December 20X9, as the retained earnings of the group? a. £398,400 b. £398,720 O c. £416,000 O d. £402,720 O e. £428,400 f. None of these options are correct g. £394,400

On 1 January 20X8, Coconut acquired 80% of the share capital of Rice for £100,000 when Rice had retained earnings of £30,000. At 31 December 20X9, the reserves of Coconut were £400,000 and for Rice they were £50,000. NCI is measured using the fair value method and goodwill has impaired by £21,600 to date. What amount should be presented in the consolidated statement of financial position at 31 December 20X9, as the retained earnings of the group? a. £398,400 b. £398,720 O c. £416,000 O d. £402,720 O e. £428,400 f. None of these options are correct g. £394,400

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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Concept explainers

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.

Question

On 1 January 20X8, Coconut acquired 80% of the share capital of Rice for £100,000 when Rice had
retained earnings of £30,000.
At 31 December 20X9, the reserves of Coconut were £400,000 and for Rice they were £50,000. NCI is
measured using the fair value method and goodwill has impaired by £21,600 to date.
What amount should be presented in the consolidated statement of financial position at 31
December 20X9, as the retained earnings of the group?
a. £398,400
b. £398,720
O c. £416,000
d. £402,720
e. £428,400
f.
None of these options are correct
g. £394,400

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