Page 249 - SBR Integrated Workbook STUDENT S18-J19
P. 249
Group accounting – Basic groups
Example 1
Statement of financial position
On 1 April 20X6 Piaf purchased 6 million of Sinatra’s ordinary shares for $17
million. At this date the balances on Sinatra’s retained earnings and other
components of equity were $2 million and nil respectively. The statements of
financial position of the two companies at 31 March 20X7 are shown below.
Piaf Sinatra
$m $m
Non-current assets
Property, plant and equipment 22 15
Investments 20 –
—— ——
42 15
Current assets 12 8
—— ——
54 23
—— ——
Equity
Share capital $1 ordinary shares 26 10
Retained earnings 13 7
Other components of equity 9 4
—— ——
48 21
Current liabilities 6 2
—— ——
54 23
—— ——
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