Page 19 - CIMA MCS Workbook November 2018 - Day 2 Suggested Solutions
P. 19
SUGGESTED SOLUTIONS
Cross‐casting of the income and expenses of Grapple and TigerFizz on a line‐by‐line basis from
the date of acquisition up to the reporting date Any intra‐group transactions between Grapple
and TigerFizz in the post‐acquisition period should be eliminated (e.g. sales and purchases) and
any unrealised profit on inventory sold between the two entities should also be eliminated.
Cross‐casting the assets and liabilities of Grapple and TigerFizz on a line‐by‐line basis as at the
reporting date. Any intra‐group balances (e.g. receivables and payables arising from intra‐group
trading) should be cancelled.
The share capital and share premium of Grapple only will be included in the consolidated
statement of financial position as it is a statement of financial position containing all assets and
liabilities under the control of the parent entity.
If you have any further queries relating to these issues, please contact me.
Financial Manager
KAPLAN PUBLISHING 109
