The summarized statements of financial position of PT ABC and PT DEF as of December 31, 2018 are provided below. If PT ABC acquired a 30% interest in PT DEF on December 31, 2018 for Rp225.000 and the equity method of accounting for the investment were used, the amount of the debit to Equity Investments would have been ? PT ABCStatement of Financial PositionDecember 31, 2018AssetsRp1.200.000LiabilitiesShare capital-ordinaryRetained earningsTotal equitiesRp 150.000600.000450.000Rp1.200.000PT DEFStatement of Financial PositionDecember 31, 2018AssetsRp900.000Rp225.000555.000LiabilitiesShare capital-ordinaryRetained earningsTotal equities120.000Rp900.000

AS per IAS-28( Investment in Associates ) any investment that is made so that the investor obtains…

Answered: the amount of the debit to Equity…

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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The summarized statements of financial position of PT ABC and PT DEF as of December 31, 2018 are provided below. If PT ABC acquired a 30% interest in PT DEF on December 31, 2018 for Rp225.000 and the equity method of accounting for the investment were used, the amount of the debit to Equity Investments would have been ?

PT ABC
Statement of Financial Position
December 31, 2018
Assets
Rp1.200.000
Liabilities
Share capital-ordinary
Retained earnings
Total equities
Rp 150.000
600.000
450.000
Rp1.200.000
PT DEF
Statement of Financial Position
December 31, 2018
Assets
Rp900.000
Rp225.000
555.000
Liabilities
Share capital-ordinary
Retained earnings
Total equities
120.000
Rp900.000

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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