Question 1 The Omaheke Manufacturers Ltd acquired Salomon Factory Lld on 1 January 2015 for N$ 1.8 million of Salomon Factory Lld ordinary 50 cents shares paying N$1.2m. At the date of acquisition the retained earnings of Salomon Factory Lld were N$110,000. The draft balance sheets of the two enterprises as at 31 December 2017 were as follows: Assets Non-current assets: Omaheke Salomon Manufacturers Factory Ltd Lld N$ 000 N$ 000 Property 1,750 1,340 Plant and equipment 930 620 Investment in Lia 1,400 – 4,080 1,960 370 260 410 250 110 20 890 530 4,970 2,490 2,200 1,200 200 100 1,320 200 3,720 1,500 820 740 350 240 80 10 430 250 4,970 2,490 Current assets: Inventory Trade receivables Cash Total assets Equity and liabilities Equity: Ordinary shares Share premium account Retained earnings Non-current liabilities: Loans Current liabilities: Trade payables Tax Total equity and liabilities The additional information: When Omaheke Manufacturers Ltd bought the shares in Salomon Factory Lld it also made a loan to Salomon Factory Lld of N$200,000. This loan is still outstanding. The fair value of Salomon Factory Lld property and plant and equipment at the date of acquisition was N$100,000 and N$50,000 respectively in excess of the carrying values. Salomon Factory Lld balance sheet has not taken account of these fair values. Group depreciation policy is as follows: Property 2% and Plant and equipment 10% per annum using straight-line basis. Depreciation is calculated on fair values where available. iii. An impairment review has been carried out on the consolidated goodwill at the end of each year since the acquisition the goodwill impaired has been as follows: in 2015/12/31 N$ 5 000, 2016/12/31 N$ 2 000, 2017/12/31 N$ 3 000 respectively Required:

Question 1 The Omaheke Manufacturers Ltd acquired Salomon Factory Lld on 1 January 2015 for N$ 1.8 million of Salomon Factory Lld ordinary 50 cents shares paying N$1.2m. At the date of acquisition the retained earnings of Salomon Factory Lld were N$110,000. The draft balance sheets of the two enterprises as at 31 December 2017 were as follows: Assets Non-current assets: Omaheke Salomon Manufacturers Factory Ltd Lld N$ 000 N$ 000 Property 1,750 1,340 Plant and equipment 930 620 Investment in Lia 1,400 – 4,080 1,960 370 260 410 250 110 20 890 530 4,970 2,490 2,200 1,200 200 100 1,320 200 3,720 1,500 820 740 350 240 80 10 430 250 4,970 2,490 Current assets: Inventory Trade receivables Cash Total assets Equity and liabilities Equity: Ordinary shares Share premium account Retained earnings Non-current liabilities: Loans Current liabilities: Trade payables Tax Total equity and liabilities The additional information: When Omaheke Manufacturers Ltd bought the shares in Salomon Factory Lld it also made a loan to Salomon Factory Lld of N$200,000. This loan is still outstanding. The fair value of Salomon Factory Lld property and plant and equipment at the date of acquisition was N$100,000 and N$50,000 respectively in excess of the carrying values. Salomon Factory Lld balance sheet has not taken account of these fair values. Group depreciation policy is as follows: Property 2% and Plant and equipment 10% per annum using straight-line basis. Depreciation is calculated on fair values where available. iii. An impairment review has been carried out on the consolidated goodwill at the end of each year since the acquisition the goodwill impaired has been as follows: in 2015/12/31 N$ 5 000, 2016/12/31 N$ 2 000, 2017/12/31 N$ 3 000 respectively Required:

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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Question 1

The Omaheke Manufacturers Ltd acquired Salomon Factory Lld on 1 January 2015 for N$ 1.8 million of Salomon Factory Lld ordinary 50 cents shares paying N$1.2m. At the date of acquisition the retained earnings of Salomon Factory Lld were N$110,000. The draft balance sheets of the two enterprises as at 31 December 2017 were as follows:

Assets Non-current assets:	Omaheke Salomon Manufacturers Factory Ltd Lld N$ 000 N$ 000
Property	1,750 1,340
Plant and equipment	930 620
Investment in Lia	1,400 –

4,080	1,960
370	260
410	250
110	20
890	530
4,970	2,490
2,200	1,200
200	100
1,320	200
3,720	1,500
820	740
350	240
80	10
430	250
4,970	2,490

Current assets:

Inventory

Trade receivables Cash

Total assets Equity and liabilities Equity:

Ordinary shares

Share premium account Retained earnings

Non-current liabilities:

Loans

Current liabilities:

Trade payables

Tax

Total equity and liabilities

The additional information:

When Omaheke Manufacturers Ltd bought the shares in Salomon Factory Lld it also made a loan to Salomon Factory Lld of N$200,000. This loan is still outstanding.
The fair value of Salomon Factory Lld property and plant and equipment at the date of acquisition was N$100,000 and N$50,000 respectively in excess of the carrying values. Salomon Factory Lld balance sheet has not taken account of these fair values. Group depreciation policy is as follows: Property 2% and Plant and equipment 10% per annum using straight-line basis. Depreciation is calculated on fair values where available.

iii. An impairment review has been carried out on the consolidated goodwill at the end of each year since the acquisition the goodwill impaired has been as follows:

in 2015/12/31 N$ 5 000, 2016/12/31 N$ 2 000, 2017/12/31 N$ 3 000 respectively

Required:

Prepare the consolidated balance sheet of the Omaheke Manufacturers as at 31 December 2017.

Financial Accounting 2 ASS 2 202 X
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Question 1
The Omaheke Manufacturers Ltd acquired Salomon Factory Lld on 1 January 2015 for
N$ 1.8 million of Salomon Factory Lld ordinary 50 cents shares paying N$1.2m. At the
date of acquisition the retained earnings of Salomon Factory Lld were N$110,000. The
draft balance sheets of the two enterprises as at 31 December 2017 were as follows:
Omaheke
Salomon
Manufacturers Factory
Ltd
Lld
N$ 000
N$ 000
Assets
Non-current assets:
Property
Plant and equipment
1,750
1,340
930
620
Investment in Lia
1,400
4,080
1,960
Current assets:
Inventory
370
260
Trade receivables
410
250
Cash
110
20
890
530
Total assets
4,970
2,490
Equity and liabilities
Equity:
Ordinary shares
Share premium account
Retained earnings
2,200
1,200
200
100
1,320
200
3,720
1,500
Non-current liabilities:
Loans
820
740
Current liabilities:
Trade payables
350
240
Tax
80
10
430
250
Total equity and liabilities
4,970
2,490
The additional information:
P Type here to search
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1:59 pm
02/05/2021
W
近

Financial Accounting 2 ASS 2 202 X
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(-- D Page view A" Read aloud V Draw
E Highlight
3
of 7
Erase
Non-current liabilities:
Loans
820
740
Current liabilities:
Trade payables
350
240
Tax
80
10
430
250
Total equity and liabilities
4,970
2,490
The additional information:
Page 2 of 7
i.
When Omaheke Manufacturers Ltd bought the shares in Salomon Factory Lld
it also made a loan to Salomon Factory Lld of N$200,000. This loan is still
outstanding.
The fair value of Salomon Factory Lld property and plant and equipment at the
date of acquisition was N$100,000 and N$50,000 respectively in excess of the
carrying values. Salomon Factory Lld balance sheet has not taken account of
these fair values. Group depreciation policy is as follows: Property 2% and Plant
and equipment 10% per annum using straight-line basis. Depreciation is
i.
calculated on fair values where available.
An impairment review has been carried out on the consolidated goodwill at the
end of each year since the acquisition the goodwill impaired has been as follows:
in 2015/12/31 N$ 5 000, 2016/12/31 N$ 2 000, 2017/12/31 N$ 3 000 respectively
Required:
Prepare the consolidated balance sheet of the Omaheke Manufacturers as at 31
December 2017.
i.
(30 Marks)
P Type here to search
모 4) ENG
1:59 pm
02/05/2021
近

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