Advanced Corporate Reporting: Consolidated Financial Statements, Fair Value Accounting, Financial Statement Analysis, IAS 28, IFRS 5

Advanced corporate reporting

TABLE OF CONTENTS
QUESTION: 1.................................................................................................................................3
QUESTION 4...................................................................................................................................4
A..................................................................................................................................................4
B..................................................................................................................................................5
C..................................................................................................................................................5
QUESTION 5...................................................................................................................................5
A..................................................................................................................................................5
B..................................................................................................................................................6
C..................................................................................................................................................6
REFERENCES................................................................................................................................8

QUESTION: 1
Consolidated statement of financial position
Particulars Amount
Assets
Non – current assets
Property Plant and equipment [718750 + (350000 + 35000 – 7000)] £1096750
Goodwill £72900
Current Assets
Inventories [84000 + 52360 – 3600] £132760
Trade receivables [56250 + 38500] £94750
Cash and cash equivalents [11800 + 9940] £21740
Total assets £1418900
Equity and liabilities
Ordinary shares £625000
Retained earnings £127910
Non – controlling interest £128810
Long term liabilities 192500 + 11200 £203700
Current liabilities
Trade payables 64300 + 49280 £113580
Other current liabilities 207400 + 16520 £223920
Total equity and liabilities £1418900
Working Notes:
1. Calculation of net assets of Court Plc. on the date of reporting
Particulars At acquisition on 1st
April 2019
On reporting date as
at 31st March 2021
Post – acquisition
Equity Shares £280000 £280000 -
Retained earnings £31500 £71400 £39900
Building: Fair value
adjustment (less
Depriciation)
£35000 35000 – 3500 * 2
(35000/10) = 28000
(7000)
Fair value of the net
assets
£346500 £379400 £32900
2. Calculation of Goodwill
Goodwill = Consideration provided by Tennis Plc. + Fair value of Non – controlling interest at
acquisition – net assets at acquisition of Court Plc. = 310000 + 116000 – 346500 = 79500.
Goodwill to be shown in consolidated financial statement as at 31st March 2021 = 79500 – 6600
= 72900.