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Basic group accounts (F1 revision)

Example 12.2

Tony Ltd acquired 80% of the equity share capital of Junior Ltd on 1 April 20X2,
paying $4.5m in cash. At this date, the retained earnings of Junior were
$1,710,000. Below are the statements of financial position of Tony and Junior
as at 31 March 20X4:

Tony Junior
$000 $000
Non-current assets 6,300 4,320
Investment in Junior 4,500 −
Current assets 1,800 1,080
––––– ––––
12,600 5,400
––––– ––––
Equity
Share capital 7,200 1,800
Retained earnings 3,870 2,610

Non-current liabilities 360 270

Current liabilities 1,170 720
––––– ––––
12,600 5,400
––––– ––––

It is group policy to value the NCI at fair value at the date of acquisition. The
fair value of the NCI in Junior at 1 April 20X2 was $1,080,000.

An impairment review was carried out at the reporting date and it was
determined that goodwill had been impaired by $270,000.

Required:

Prepare a consolidated statement of financial position for the Tony group
as at 31 March 20X4.

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