Page 325 - F3 -FA Integrated Workbook STUDENT 2018-19
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Consolidated financial statements I
Example 2a cont.
(W2) Net assets of subsidiary
Acquisition date Reporting date
$ $
Share capital 50,000 50,000
Share premium N/A N/A
Revaluation surplus N/A N/A
Retained earnings 129,000 169,000
(1)
Fair value adjustment 32,000 32,000
PURP adjustment N/A N/A
––––– –––––
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(to W3)
Key issues
(1)
Ref = Information in notes to question, but often requires calculation. In this
example, the adjustment to restate the land to its fair value at the date of
acquisition is
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