Page 491 - Microsoft Word - 00 CIMA F1 Prelims STUDENT 2018.docx

Answers

Workings
(W1) Group structure

P

S

(W2) Net assets of subsidiary
Acquisition date Reporting date
$000 $000
Share capital 500 500
Retained earnings 400 400
––––– –––––
900 900
––––– –––––

In this case the acquisition date was 31 March 20X1 which was the same as
the reporting date so the columns include the same figures. Therefore, there
are no post-acquisition profits.

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