Straw Group

Consolidated statement of financial position as at 31 December 2021

£'000 £'000
Non-current assets
Goodwill (W3) 11
Property, plant and equipment (120+177+20-12) 305
Investments (134-134) -
316
Currrent Assets
Inventory (10+5-1) 14
Receivables (30+25-6 inter group) 49
Bank (10+5+2 cit) 17 80
396
Equity and liabilities
Ordinary share of £1 each 100
Retained earnings (W4) 181.4
281.4
Non-controlling interest (W5) 41.6
Current Liabilities (60+17-4 inter group) 73
396

Workings (all figures in £'000)

(W1) Group structure
P

(60,000/75,000) 80 % acquired 3 years ago

(W2) Net assets of Berry @:

reporting acquisition post-
date acquisition
OSC 75 75
Retained earnings 120 60 60
195 135
Increase in fair value 20 20
Excess deprn (20/5yrs)x3yrs (12) (12)
203 155 48

(W3) Goodwill
Cost of investment in Berry 134
Fair value of NCI 32
166
Less 100% of Net assets of Berry @ acquisition (W2) (155)
Balance to consolidated statement of financial position 11

(W4) Consolidated Retained Earnings

Straw's balance 144
Berry's post acq profit: 80%x48 (W2) 38.4
Unrealised profit 25/125 x 5 (1)
Balance to consolidated statement of financial position 181.4

(W5) Non-controlling interest in Berry

NCI @ acquisition 32
NCI share of post-acquisition reserve: 20% x 48 (W2) 9.6
Balance to consolidated statement of financial position 41.6