Question

On 31 December 2019, Par Ltd (Par) acquired a 80% interest in Sub Ltd (Sub). At the acquisition date, all the net assets of Sub were stated at its fair values. Par's measured the non-controlling interest in Sub using the net assets approach. The individual statement of financial positions immediately after the acquisition were as follows: Par Sub $000 $000 Non-current assets 200,000 110.000 Investment in Sub 130,000 Current assets 80.000 40,000 Total assets 410,000 150,000 Share capital 270,000 140,000 Retained profits 100,000 (20,000) Total equity 390,000 120,000 Current liabilities 20,000 30,000 Total equity and liabilities 410,000 150,000 Required: Prepare a consolidated statement of financial position as at the acquisition date and consolidation worksheet. Partial marks will be allocated to workings if the answer is wrong).

Answer 1

Step-1 La Step-B Ev of wet Anet on the Date of Acquisition =s.capitel & R. S. -140OTO 20070 = $120000 calculation of Guler cost of Investment (80%. Shares) von control int (20%) a fv of net Anety 24 000 120 W 34 000 Goodwill Step- yon par Hd Preparation of consolidated Bal Sheet a 31 Dec. 19 particulars | Amt $(000) Anton current Abely 732 +1.12) - 3100DD current Anety € 80 +40] - 3400D Good will Total 464000 Won 120010 220000 [1.720k] 24 000 Share capital Retained profity Nor [WN-I] Curent liab. [20+30] 50 000 464000