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Mommy
Statement of financial position as at 31 December 20X4 STEP 1 STEP 2 STEP 3 Consolidate
Intragroup
Mommy Corp. Baby Ltd. Combine Eliminate transactions St of FP
ASSETS
Non-current assets
Property, plant and equipment 120,000 90,000 210,000 210,000
Investment in Baby Ltd. (64 000 shares) 70,000 0 70,000 -70,000 0
Goodwill acquired in a business combination 6,000 6,000
Deferred tax asset 4,000 4,000 4,000
194,000 90,000 284,000 220,000
Current assets 0
Inventories 55,000 34,000 89,000 89,000
Trade and other receivables 0 0
Baby Ltd 8,000 8,000 -8,000 0
Other receivables 30,000 18,000 48,000 48,000
Cash and cash equivalents 20,000 5,000 25,000 25,000
113,000 57,000 170,000 162,000
TOTAL ASSETS 307,000 147,000 454,000 382,000
Workings:
[1]
Non-controlling interest:
Net assets of Baby (=equity): -125,000
Share of NCI (=100%-80%) 20%
Non-controlling interest: -25,000
[2]
Goodwill:
Fair value of consideration paid: 70,000
NCI at acquisition: 16,000
Less Baby's net assets at acquisition: -80,000
Goodwill: 6,000
[3]
Consolidated retained earnings:
Retained earnings of Mommy: -62,000
Retained earnings of Baby attributable to Mommy: -36,000
(80%*Baby's retained earnings of 45 000 CU)
Consolidated retained earnings: -98,000