Consolidation Worksheet and Consolidated Financial Statements

Consolidation worksheet, consolidated
financial statements

TABLE OF CONTENTS
Part A.........................................................................................................................................3
Part B..........................................................................................................................................4

PART A
At 1 July 2015:
Net fair value of identifiable assets, liabilities and contingent liabilities of Bat Ltd
Particulars Amount
Equity ($200,000 + $25,000 + $45,000)
Inventory + $10 000 (1 – 30%)
Land + $20,000 (1 –30%)
Plant & Equipment + $4,000 (1 – 30%)
Machinery + $1,000 (1 – 30%)
Trademark $10,000 (1 – 30%)
Goodwill - $25,000
Fair value of net assets acquired $276,500
Cost of acquisition $330,000
Good will (Fair value of net assets acquired- Cost of acquisition) $53,500
Unrecorded goodwill acquired ($53,500 – $25,000) $28,500
Work sheet entries
1 Business combination valuations entries at 30 June 2017
Gain (loss) on sale of non-current assets dr 20,000
Income tax expense cr 6000
Transfer from business combination valuation reserve cr 14000
Trademark dr 10000
Deferred tax liability cr 3000
Business Combination Valuation reserve cr 7000