Page 339 - F1 Integrated Workbook STUDENT 2018

Consolidated Statement of Financial Position

Solution

(a) Proportion of net assets method

(W3) Goodwill

$000
Fair value of investment 1,540
Value of NCI at acquisition (20% × 1030) (W2) 206
Fair value of net assets (NAs) acquired (100% × 1,030) (W2)
(1,030)
Impairment (120)
–––––
Goodwill at acquisition 596
–––––
(W4) Non-controlling interests

$000
Value of NCI at acquisition (as per W3) 206
NCI × post-acquisition reserves 20% × (1,110 – 1,030) (W2) 16
NCI × impairment (W3) (fair value method only) –
––––
NCI at reporting date 222
––––
(W5) Retained earnings

$000
Parent 3,000
Subsidiary (% × post acquisition profits)
80% × (1,110 – 1,030) (W2) 64
Impairment (W3) (120)
–––––
2,944
–––––

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