On 31 Dec 20×9, H Ltd acquired
January 18th, 2023
On 31 Dec 20×9, H Ltd acquired 100% of the equity interests of SLtd. At acquisition date, the statements of financial position of HLtd and S Ltd were as follows:
|
H Ltd |
S Ltd |
|
|
$ |
$ |
|
|
Property, plant and equipment, net |
20,600 |
12,100 |
|
Investment in S Ltd |
20,000 |
|
|
Inventory |
3,000 |
4,000 |
|
Trade receivables |
3,000 |
2,000 |
|
Cash |
300 |
360 |
|
Total assets |
46,900 |
18,460 |
|
Provisions |
2,000 |
500 |
|
Trade and other payables |
3,000 |
800 |
|
Total liabilities |
5,000 |
1,300 |
|
Net assets |
$41,900 |
$17,160 |
|
Share capital |
25,000 |
10,000 |
|
Retained earnings |
16,900 |
7,160 |
|
Equity |
$41,900 |
$17,160 |
Assuming carrying amount of identifiable net assets of S Ltd wasclose to fair value on the date of acquisition.
Required:
Prepare the consolidated statement of financial position of HLtd and its subsidiary, S Ltd as at 31 Dec 20×9.
Answer:
| Consolidated Statement of financialposition | ||||
| Non-Current Assets | 32,700 | |||
| Inventory | 7,000 | |||
| Goodwill | 2,840 | (20000-(10000+7160)) | ||
| Trade receivable | 5,000 | |||
| Cash | 660 | |||
| Total Assets | 48,200 | |||
| Provisions | 2,500 | |||
| Trade and Other Payables | 3,800 | |||
| Total liabilities | 6,300 | |||
| Net Assets | 41,900 | |||
| Share capital | 25,000 | |||
| Retained Earnings | 16,900 | |||
| 41,900 |
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