Consolidation Schedule: Cello

Holding: 1,000/1,250 = 80% Total Pre Post NCI

> 50% = Subsidiary £000 £000 £000 £000
Share Capital 1,250 1,000 250
Retained Earnings Pre 3,500 2,800 700
Retained Post 4,295 – 3,500 795 636 159

5,545 3,800 636 1,109

Consideration 4,000

Goodwill 200

Dividend Proposed at End of Year: 20

Group Share of Dividend Proposed: 20 x 80% = 16
Dividends taken into account in income statement, therefore 16 to be
eliminated from receivables and payables in group SoFP.
1
Consolidation Schedule: Violin
Holding: 300/(600 x 2) = 25% Total Pre Post
(20% – 49% Holding = Associate) £000 £000 £000
Share Capital 600 150
Retained Earnings Pre 1,200 300
Retained Earnings Post 580 145
2,380 450 145
Consideration 500
Goodwill 50

Investment in Violin in Group Statement of Financial Position

Method 1: Share of Net Assets: 2,380 x 25% + 50 – 50 = 595
Method 2: Cost + Post Acquisition Retained Earnings – Goodwill
Impaired: 500 + 145 – 50 = 595
Dividend received in Income Statement: 20 x 25% = 5
2
Double Bass Group: Statement of Financial Position
at 31 March 2019 £000
Non Current Assets 4,177 + 5,128 9,305
Investment in Violin 595
9,900
Current Assets 1,020 + 1,285 – 16 2,289
Total Assets 12,189

Capital and Reserves

Share Capital 2,500
Share Premium 500
Group Retained Earnings (below) 6,323
Equity Attributable to the Owners of Double Bass 9,323
Non Controlling Interest 1,109
Total Equity 10,432
Current Liabilities 905 + 868 – 16 1,757
12,189

3
Group Retained Earnings £000
Double Bass Retained Earnings 5,792
Cello: Post Acquisition Retained Earnings 636
Violin: Post Acquisition Retained Earnings 145
Goodwill impaired: Cello (200)
Goodwill impaired: Violin (50)
6,323

4
Double Bass Group: Income Statement for the Year Ended
31 March 2019
DB C V Adjust Group
£000 £000 £000 £000 £000
Revenue 4,289 1,903 – 6,192
Cost of Sales 2,790 1,003 – 3,793
Gross Profit 1,499 900 – 2,399
Other Xs 50 35 – 85
Assoc PAT – – 105 (420 x 25%) 105
PBT 1,449 865 105 2,419
Income Tax 513 300 – 813
Profit for Year 936 565 105 1,606

Profit for the Year attributable to: £000

Owners of the Parent 936 + 565 x 80% + 105 1,493
Non Controlling Interest 565 x 20% 113
Profit for the Year 1,606

5