P acquired 80% of the capital of S on 1 January 2021. At the year end 31 December 2021 the two companies have the following statements of financial position: P Investment in S Other assets Share capital Share premium Retained earnings 1 January 2021 Profit for year 2021 Notes 1. 2. $ 4,000 8,000 12,000 6,000 4,000 2,000 6,000 12,000 S $ 4,000 4,000 1,000 500 1,500 1,000 4,000 2,500 Non-controlling interest is valued at fair value on acquisition, which was $2,300 on 1 January 2021. There has been no change in S's share capital during the year. Required: Prepare the consolidated statement of financial position of the P group as at 31 December 2021.
P acquired 80% of the capital of S on 1 January 2021. At the year end 31 December 2021 the two companies have the following statements of financial position: P Investment in S Other assets Share capital Share premium Retained earnings 1 January 2021 Profit for year 2021 Notes 1. 2. $ 4,000 8,000 12,000 6,000 4,000 2,000 6,000 12,000 S $ 4,000 4,000 1,000 500 1,500 1,000 4,000 2,500 Non-controlling interest is valued at fair value on acquisition, which was $2,300 on 1 January 2021. There has been no change in S's share capital during the year. Required: Prepare the consolidated statement of financial position of the P group as at 31 December 2021.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
100%
Qw.31.
Transcribed Image Text:P acquired 80% of the capital of S on 1 January 2021. At the year end 31 December 2021 the
two companies have the following statements of financial position:
P
Investment in S
Other assets
Share capital
Share premium
Retained earnings
1 January 2021
Profit for year 2021
Notes
1.
2.
$
4,000
8,000
12,000
6,000
4,000
2,000
6,000
12,000
S
$
4,000
4,000
1,000
500
1,500
1,000
4,000
2,500
Non-controlling interest is valued at fair value on acquisition, which was $2,300 on 1
January 2021.
There has been no change in S's share capital during the year.
Required:
Prepare the consolidated statement of financial position of the P group as at 31 December
2021.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
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,
Accounting
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