Page 366 - F1 Integrated Workbook STUDENT 2018

Chapter 21

Workings

(W1) Group structure

75% Tom

Emily 30%

(1 full year) James

(W2) Net assets – James

Acquisition date Reporting date
$000 $000
Share capital 840.0 840.0
Retained earnings (56.0) 602.0
––––– –––––
784.0 1,442.0
––––– –––––
Note that James has a debit balance in retained earnings at the date of
acquisition rather than the more usual retained earnings credit balance.

(W2) Net assets – Emily

Acquisition date Reporting date
$000 $000
Share capital 560.0 560.0
Retained earnings 140.0 448.0
––––– ––––––
700.0 1,008.0
––––– ––––––

356