Horsefield

Consolidated Statement of Financial Position as at 31 March 20X2

$'000 $'000
Non - Current Assets
Property, Plant and Equipment ($8,050 + $3,600 + $120) 11,770
Goodwill (W1) 1,170
License ($180 - $60) 120
Investments (W5) 1,040
Investment in Associate (W3) 717
14,817
Current Assets
Inventory ($830 + $340) 1,170
Accounts Receivable ($520 + $290 - 40) 770
Bank ($240 + $40) 280
2,220

Total Assets 17,037

Equity and Liabilities

Ordinary Shares of $1 each 5,000
Retained Earnings (W6) 8,683
13,683
Non - Controlling Interest (W8) 364
14,047

Non - Current Liabilities

10% Loan Notes ($500 + $240) 740

Current Liabilities
Accounts Payable ($420 + $960) 1,380
Taxation ($220 + 250) 470
Provision for Proposed Dividend ($200 + $10 [W8]) 210
Overdraft 190
2,250

Total Equity and Liabilities 17,037

 Workings :

1 Purchased Goodwill
$'000
FV at of Consideration transferred 3,240
(1,200,000sh x 90% x $3)
Add : FV of NCI ($2,300 x 10%) 230
3,470
FV of Net Assets at DOA (W2) - 2,300
Goodwill 1,170

2 FV of Net Assets at Date of Acquisition

Ordinary Shares 1,200
Pre-Acq Retained Earnings 800
FV Adjustment of Investment Property 120
License 180
2,300

3 Investment in Associate
$'000
Cost of Investment 630
(600,000sh x 30% x $3.50)
Share of Post - Acq Profit 90
($600,000 x 30% x 6/12)
URP ($10,000 [W4] x 30%) - 3
717

4 URP in Inventory

REV 130% $65,000

COST 100% $50,000
GP 30% $15,000

= $65,000 x 30%
130%

= $15,000

= $15,000 x 2/3

= $10,000
5 Investments
$'000
As per Financial Statement 4,000
Less : Inv in S (W1) - 3,240
Less : Inv in A (W3) - 630
130
Add : Inv in S 910
1,040

6 Retained Earnings
$'000
As per the financial statements 7,300

H's Share of S's Post-Acq Profit 1,296

($1,440 [W7] x 90%)

H's Share of A's Post-Acq Profit 90

($600,000 x 30% x 6/12)

URP ($10,000 [W4] x 30%) - (W3) - 3

8,683

7 S's Post Acquisition Profit

NA @ DOA NA @ Rep Date
$'000 $'000
Ordinary Shares 1,200 1,200
Pre-Acq Retained Earnings 800 2,200
Add : Proposed Dividends 100
FV Adjustment of Inv Prop 120 120
License 180 180
Less : Amortisation
($180 x 2yrs / 6 yrs) - 60
2,300 3,740 1,440 (Post- Acq Profit)

8 Non - Controlling Interest

$'000
FV at Date of Acquisition (W1) 230
NCI's Share of S's Post-Acq Profit 144
($1,440 [W7] x 10%)
Less : Dividend ($100 x 10%) - 10
364
(Post- Acq Profit)