Long-term bomowingsTrade and other payablesTotal equity and liabilities30 00057 00081 000435 000261 000EXTRACT FROM THE STATEMENTS OF PROFIT OR LOSS AND OTHERCOMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2020Chelsea LTDOrlando LTDN$30 00055 5009 000ProfitDividend receivedProfit before taxIncome tax expensePROFIT FOR THE YEAROther comprehensive incomeMark-to-market reserveOther comprehensive income for the yearTOTAL COMPREHENSIVE INCOME FOR THE YEAR64 50030 000(16 500)(9 000)21 00048 0004 5004 50052 50021 000Page 6 of?EXTRACT FROM THE STATEMENTS OF CHANGES IN EQUITY FOR THE YEAR ENDED31 DECEMBER 2020Cheisea LtdMark-to-Orlando LtdRetainedRetainedmarketeamingseamingsreserveBalance at 1 January 2020Profit for the yearOther comprehensive incomeDividendBalance at 31 December 20207 50042 00030 00048 00021 0004 500(24 000)(9 000)12 00054 00054 000Additional information• Assume that the identifiable assets acquired, and the liablities assumed atacquisition date are shown at their acquisition-date fair values, as determined interms of IFRS 3.• Chelsea Ltd elected to measure non-controlling interests in an acquiree at itsproportionate share of the acquiree's identifiable net assets at acquisition date.• Ignore tax implicationsRequiredPrepare the consolidated financial statements of the Chelsea Ltd Group for the reportingperiod ended 31 December 2020. (30) QUESTION 4On 1 January 2018, Chelsea Ltd acquired 75% of the shares in Orlando Ltd at N$126 000.At that date, the balance on Orlando Ltd's retained earnings account amounted to N$36 000.The share capital amounted to N$120 000 and no shares have been issued since that date.The following are the condensed financial statements of Chelsea Ltd and subsidiary OrlandoLtd at 31 December 2020.STATEMENTS OF FINANCIAL POSITION AS AT 31 DECEMBER 2020Chelsea LtdOrlando LtdN$N$ASSETSProperty, plant and equipment168 000105 000Investment in Orlando Ltd at fair value180 000Trade receivables87 000156 000Total assets435 000261 000EQUITY AND LIABILITIESShare capital240 000120 000Mark-to-market reserve54 000Retained earningsLong-term borrowingsTrade and other payablesTotal equity and liabilities54 00054 00030 0006 00057 00081 000435 000261 000

QUESTION 4 On 1 January 2018, Chelsea Ltd acquired 75% of the shares in Orlando Ltd at N$126 000. At that date, the balance on Orlando Ltd's retained earnings account amounted to N$36 000. The share capital amounted to N$120 000 and no shares have been issued since that date. The following are the condensed financial statements of Chelsea Ltd and subsidiary Orlando Ltd at 31 December 2020. STATEMENTS OF FINANCIAL POSITION AS AT 31 DECEMBER 2020 Chelsea Ltd N$ Orlando Ltd N$ ASSETS Property, plant and equipment 168 000 105 000

QUESTION 4 On 1 January 2018, Chelsea Ltd acquired 75% of the shares in Orlando Ltd at N$126 000. At that date, the balance on Orlando Ltd's retained earnings account amounted to N$36 000. The share capital amounted to N$120 000 and no shares have been issued since that date. The following are the condensed financial statements of Chelsea Ltd and subsidiary Orlando Ltd at 31 December 2020. STATEMENTS OF FINANCIAL POSITION AS AT 31 DECEMBER 2020 Chelsea Ltd N$ Orlando Ltd N$ ASSETS Property, plant and equipment 168 000 105 000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 14RE

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On 1 January 2018, Chelsea Ltd acquired 75% of the shares in Orlando Ltd at N$126 000. At that date, the balance on Orlando Ltd’s retained earnings account amounted to N$36 000. The share capital amounted to N$120 000 and no shares have been issued since that date.The following are the condensed financial statements of Chelsea Ltd and subsidiary OrlandoLtd at 31 December 2020.STATEMENTS OF FINANCIAL POSITION AS AT 31 DECEMBER 2020Chelsea LtdN$Orlando LtdN$ASSETSProperty, plant and equipment 168 000 105 000Investment in Orlando Ltd at fair value 180 000 -Trade receivables 87 000 156 000Total assets 435 000 261 000EQUITY AND LIABILITIESShare capital 240 000 120 000Mark-to-market reserve 54 000 -Retained earnings 54 000 54 000Long-term borrowings 30 000 6 000Trade and other payables 57 000 81 000Total equity and liabilities 435 000 261 000EXTRACT FROM THE STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2020Chelsea LTDN$Orlando LTDN$Profit 55 500…
9.1 Calculate Left Ltd's share of profits in Right Ltd for the year ended 30 June 2023. The following information is relevant to questions 9.1 and 9.2. Left is a parent company that prepares consolidated financial statements. On 1 July 2021 Left Ltd acquired 40% of the equity in Right Ltd for $220 000. At this date the equity in Right Ltd consisted of: Capital $250 000 Revaluation reserve $50 000 Retained profits $150 000 Right Ltd carried its assets fair values with the exception of one item of plant & equipment whose fair value was $20 000 greater than its carrying amount. The estimated useful life of this item is 4 years. Summary of movements in the retained earnings of Right Ltd: 2022 2023 Profit after tax Retained profits at start Dividends 140 000 200 000 150 000 210 000 (80 000) 210 000 (100 000) 310 000 Retained profits at end At 30 June 2022 there were unrealised profits before tax of $10 000 arising from inventory transfers between the two entities.
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“IFRS 10 Consolidated Financial Statements states that there are few ways to ascertain if the investor ‘controls’ and ‘influences’ its investees.”
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On 1st January 2021, TNT Plc bought 27,000,000 ordinary shares of the shares of RWT Ltd. At this date. Statements of Financial Position as at 31 December 2021: TNT Plc RWT Ltd £000 £000 Non-Current Assets Property, Plant and Equipment at NBV 196,875 90,000 Investments in RWT Ltd 18,375 215,250 90,000 Current Assets 56,625 24,000 Total assets 271,875 114,000 Current Liabilities 43,890 15,000 Long Term Loans 105,000 30,000 Total Liabilities 148,890 45,000 Equity Share Capital (£0.4 share) 30,000 45,000 Share Premium 45,000 15,000 Retained Earnings 47,985 9,000 Total equity 122,985 69,000 Total Liabilities and equity 271,875 114,000 You are also given the following information: 1. The fair values of the non-current assets of RWT Ltd at 1 January 2021 were £99,000,000 as compared with their book value of £99,000,000. 2. RWT’s retained earnings at 1 January 2021 were £6,000,000. Required Calculate total non-current…
ccounting Alpha Ltd acquired 30% of the voting shares of Beta Ltd on 1 July 2021 for $150 000. This acquisition resulted in Alpha Ltd having significant influence over Beta Ltd. At the date of acquisition, the shareholder’s equity of Beta is as follows: Share capital 350 000 Retained profits 50 000 400 000 The following information relates to Beta Ltd as at 30 June 2022, the end of financial year FY2022: Profit for FY2022 90 000 Dividend paid out of the profit of FY2022 50 000 Asset revaluation reserve 25 000 Additional information: Mu Ltd is 100% owned by Alpha Ltd and is Alpha’s subsidiary. During FY2022, Beta sold $100 000 of inventories to Mu Ltd and made profit of $40 000. As at 30 June 2022, 20% of the inventories were still held by Mu Ltd. Required: a) Prepare journal entries for Alpha Ltd in FY2022 to account for its investment in Beta Ltd using the Equity Method. Use the Reclassification Method to account for the profit…
Question 2 MegaBite Ltd acquired 80% of the shares of SmallBite two years ago when the reserves stood at S13 000. Draft statements of financial position as at 2018 November 30 for cach company are as follows: MegaBite Ltd SmallBite Ltd mi li Non-current assets Tangible assets Investment in Tropical Blue at cost 51 000 212 000 58 000 270 000 51 000 Current Assets Total assets 106 000 376 000 38 000 89 000 Equity Ordinary Shares at SI cach Retained earnings 201 000 L19 000 320 000 38 000 28 000 66 000 Current Liabilities 56 000 _376 000 23 000 89 000 Total equity and liabilities Additional information: i. During the year, SmallBite Ltd sold goods to MegaBite Ltd for $120 000, the profit Tropical Blue being 25% of selling price. At the period end, $40 000 of these goods remain unsold in the inventories of MegaBite Ltd. to ii. At 2018 November 30, MegaBite Ltd owed SmallBite Ltd $20 000 for goods bought and this debt is included in the trade payables of MegaBite Ltd and the receivables of…
Group Assignment 5, Due Date: 29 Sep 2019 Problem 16.8 Share issues and statement of changes in equity Gundagai Ltd was incorporated on 30 June 2016. On 1 July 2016, the company issued a prospectus offering 300 000 ordinary shares at an issue price of $10, payable on the following terms: application $3 on allotment $3 on $2 on first call $2 on second call A summary of the applications and allotments register follows: Number of shares applied for 200 000 Number of shares allotted Amount paid per share on application $ 3 150 000 100 000 100 000 $6 50 000 50 000 $10 on 1 September 2016. All money received in excess of applied to amounts due on allotment and calls. Where appropriate, Shares were allotted to all applicants application was refunds of application money were made. All allotment money was received by 30 September 2016. атоиnts duе оn On 1 November 2016, Gundagai Ltd's directors made a call of 42c per share, payable by 30 November 2016. By 31 December, call money had not been…