Required: Prepared the consolidated statement of financial position for the Pee group at 31 December 2020. Pee plc has a policy of valuing Non-Controlling interest at their share of net assets at acquisition.
Required: Prepared the consolidated statement of financial position for the Pee group at 31 December 2020. Pee plc has a policy of valuing Non-Controlling interest at their share of net assets at acquisition.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
The qualitative characteristics of relevance, reliability, and comparability identified in the IASB's framework for the preparation and presentation of financial statements ( Framework) are some of the attributes that make financial information useful to the various users of financial statements.
Required: Explain what is meant by relevance, reliability, and comparability and how they make financial information useful.
Transcribed Image Text:Question1
a) On 31 December 2018 Pee Plc purchased 80% of the share capital of Cee Ltd for £60,000 when
its accumulated profits were £30,000. The individual Statement of Financial Positions of
PeePlc and CeeLtdat 31December2020were as follows:
Рее
Cee
Cee Ltd
£
£
Non-current assets:
Property, plant and equipment
160,000
50,000
Cost of investment
60,000
00000
220,000
50,000
Current assets
30.000
10,000
Total assets
250,000
60,000
Equity and liabilities
Ordinarysharesof£leach
100,000
20,000
Retained profits
150,000
40,000
250,000
60,000
Consolidated goodwill is subject to an annual impairment review. No impairment has been detected to
date.
Required:
Prepared the consolidated statement of financial position for the Pee group at 31 December 2020.
Pee plc has a policy of valuing Non-Controlling interest at their share of net assets at acquisition.
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