On 1 October 20X4, Pyramid Co acquired 80% of Square Co’s nine million equity shares. At the date of acquisition, Square Co had an item of plant which had a fair value of $3m in excess of its carrying amount. At the date of acquisition it had a useful life of five years. Pyramid Co’s policy is to value non-controlling interests at fair value at the date of acquisition. For this purpose, Square Co’s shares had a value of $3•50 each at that date. In the year ended 30 September 20X5, Square Co reported a profit of $8m. At what amount should the non-controlling interests in Square Co be valued in the consolidated statement of financial position of the Pyramid group as at 30 September 20X5?
On 1 October 20X4, Pyramid Co acquired 80% of Square Co’s nine million equity shares. At the date of acquisition, Square Co had an item of plant which had a fair value of $3m in excess of its carrying amount. At the date of acquisition it had a useful life of five years. Pyramid Co’s policy is to value non-controlling interests at fair value at the date of acquisition. For this purpose, Square Co’s shares had a value of $3•50 each at that date. In the year ended 30 September 20X5, Square Co reported a profit of $8m. At what amount should the non-controlling interests in Square Co be valued in the consolidated statement of financial position of the Pyramid group as at 30 September 20X5?
On 1 October 20X4, Pyramid Co acquired 80% of Square Co’s nine million equity shares. At the date of acquisition, Square Co had an item of plant which had a fair value of $3m in excess of its carrying amount. At the date of acquisition it had a useful life of five years. Pyramid Co’s policy is to value non-controlling interests at fair value at the date of acquisition. For this purpose, Square Co’s shares had a value of $3•50 each at that date. In the year ended 30 September 20X5, Square Co reported a profit of $8m. At what amount should the non-controlling interests in Square Co be valued in the consolidated statement of financial position of the Pyramid group as at 30 September 20X5?
On 1 October 20X4, Pyramid Co acquired 80% of Square Co’s nine million equity shares. At the date of acquisition, Square Co had an item of plant which had a fair value of $3m in excess of its carrying amount. At the date of acquisition it had a useful life of five years. Pyramid Co’s policy is to value non-controlling interests at fair value at the date of acquisition. For this purpose, Square Co’s shares had a value of $3•50 each at that date. In the year ended 30 September 20X5, Square Co reported a profit of $8m. At what amount should the non-controlling interests in Square Co be valued in the consolidated statement of financial position of the Pyramid group as at 30 September 20X5?
A $26,680,000
$7,900,000
$7,780,000
$12,220,000
Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.
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