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Chapter 18
Example 1 cont.
(i) During the year Sheena sold goods to Prince for $40,000. These goods
had cost Sheena $30,000. $12,000 of these goods remained in Prince’s
closing inventory.
(ii) At the date of acquisition all of Sheena’s assets were carried at fair value
with the exception of an item of plant, whose fair value was $20,000
above its carrying amount. At this date the plant had a remaining useful
life of 5 years.
(iii) On 31 January 20X4 Sheena paid a dividend of $4,000.
(iv) Prince’s policy is to value the non-controlling interest of Sheena at the
date of acquisition at its fair value.
(v) The goodwill of Sheena has suffered impairment during the year of
$5,000. Any impairment of goodwill should be accounted for as an
administrative expense.
Required:
Prepare the consolidated statement of profit or loss and other
comprehensive income of Prince for the year ended 31 March 20X4.
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