Consolidated statement of profit/loss for POLESTAR for the year ended 30working area

(w1)
Revenue 130000 Cost of investment
Cost of sales -109300
investment 13500
gross profit 20700 cash 13500
operating expenses -7000
Investment 1800
profit before tax 13700 contingent considerat 1800
income tax expense -3000
contingent 300
profit for the year 10700 profit/loss (consolida 300

profit distribution Cost of in 15300

Southstar Co loss afte -2300 (w2)

adjustments for Net assets of Southstar Co

excess depreciation -100 at the acquat the reporting date

URP -600
ordinary sh 6000 6000
adjusted loss -3000 retained e 14300 12000
fair value 2000 1900
profit attributable to 11450 URP -600
NCI -750
total profit 10700 TOTAL 22300 19300

Consolidated statement of financial position of POLESTAR as at 30 sep 20X3

ASSETS

Non-current assets

property plant and e 63900

Current assets 23200

TOTAL ASSETS 87100

EQUITY AND LIABILITIES

Ordinary share capita 30000

group retained earnin 29950
NCI 2850

LIABILITIES
Current liabilities 24300

TOTAL EQUITY AND LIABILITIES 87100

check 0
 Goodwill Consolidated reserves

cost of inv 15300 Polestar Co 28500

fair value 3600 adjustments
gain on ba 3400
fair value -22300 reduction i 300

gain on ba -3400 S.co post a -2250

NCI Consolidat 29950

fair value 3600
S.co post a -750

NCI for sof 2850

at the reporting date post acquisition

-3000
Consolidated statement of financial position of premier as at 3 (working area)

ASSETS (w1) (w4)

Cost of investment NCI
Non-current assets fair value
property plant & equ 38250 cash consi 800 S.co post a
investments 1300 Share cons 12000
Goodwill 7800 NCI
Cost of in 12800
Current assets
(w2)
Inventory 5400 Net assets of Sanford Co
recievables 4820
bank 3930 at acquisitat reportinpost acquisition

TOTAL ASSETS 61500 ordinary sh 5000 5000

retained e 3200 4500
EQUITY AND LIABILITIES fair value -1200 -1150
URP -400
Ordinary share capita 14400 Goodwill impairment -1500
retained earnings 11860
other equity reserves 800 TOTAL 7000 6450 -550
share premium 9600
NCI 3390 (W3)
Goodwill
LIABILITIES Cost of in 12800
fair value 3500
Current liabilities 21450
fair value -7000
TOTAL EQUITY AND LIABILITIES 61500
Goodwill 9300
CHECK 0 impairmen -1500

goodwill a 7800
 (w5)
Consolidated reserves
3500
-110 P.co retain 12300
S.Co post -440
3390
Consolidat 11860

(w6)
bank 130
payable 350
post acquisition trade recievable 480

1300
(a)
cost of in 32000
add : Ambra Co p -1000
less : URP*40% -240
impairmen -3000

carrying va 27760

consolidated statement of profit/loss for the year ended 30 sep 20X9

Revenue 270000 Net assets of S.co

cost of sales -162500
at acquisit at reportinpost acquisition
gross profit 107500
distribution cost -14700 fair value 5000 5000
administrative expen -24800 excess depreciation -500
investment income 1100
dividend received to 6400
finance cost -2300
intra-group sales (P-S)
profit before tax 66800
income tax expense -20000 inventory u 5000
URP 1000
loss from associates -4240

profit for the year 42560 50000

-7000
S.co profit after tax 9500 -9000
less -1000

goodwill -2000 33000

excess depreciation -500 -10000

adjusted profit 7000 23000

profit attributable to 41160

NCI 1400
total profit 42560
post acquisition
Consolidated statement of financial position for Picant as at 31 march 20X(working area)
(w1)
ASSETS Cost of investment

Non-current assets share cons 28800

Property plant & equ 63900 contingent 4200
Goodwill 12200
Carrying value of inve 13200 cost of in 33000

Current assets reduction in contingent consideration

inventory 20200 contingent 1500

trade recievables 4600 consolidated reserves 1500

TOTAL ASSETS 114100 (w2)

Net assets of S.co
EQUITY AND LIABILITIES at acquisitat reportin

Capital & reserves ordinary sh 8000 8000

retained e 16500 17500
Ordinary share capita 25000 fair value 2000 1900
group retained earnin 27500 intangible -500 0
share premium 19800 Goodwill impairment -3800
NCI 8400
TOTAL 26000 23600
LIABILITIES (w3)
Goodwill
Non-current liabilities cost of in 33000
fair value 9000
7% loan notes 16500
less: S.co net as -26000
Current liabiltiies
Goodwill 16000
Contingent considera 2700
other current liabiltie 14200

TOTAL EQUITY AND LIABILITIES 114100

check 0

(b)

as picant holds 40% of equity shares of Adler Co. this shows that picant has a significant influence
over the Company. But after the spekulate company took over the adler Co. and acquired 60% of its
equity shares. Shows that spekulate Co has now control over it. As also picant lost its seat on
adler Board. This shows that adler has no more significant influence over the operations
of the adler. This is why picant should only treat this an ordinary investment (not associates)
and should account for as per IFRS 9 (financial instruments) . and should not do equity accounting
 (w4) (w6)
NCI carrying value of investment in associates
Fair value of NCI at a 9000
S.co post acquisition -600 Cost of in 12000
A.co post 1200
NCI at reporting date 8400
Carrying va 13200
(w5)
ent consideration
Consolidated reserves

P.co retain 27200

adjustments
URP -600
S.co post a -1800
post acqui reduction i 1500
A.co post p 1200
consolidat 27500

-2400
Consolidated statement of proft/loss & other comprehensive income for the year ended 31 march 20X1

revenue 530000 intra-group sale of NCA

cost of sales -278800 (P-S)
Disposal p 5000
gross profit 251200 carrying va -4000

distribution cost -29600 URP 1000

administrative expen -38500
Excess depreciation Booked by Sentinel Company
finance cost -2100
depreciatio 1000
profit before tax 181000 depreciatio 800
income tax expense -61900
excess dep 200
profit for the year 119100
Intra-Group sale of inventory
other comprehensive income
inventory r 12000
gain on revaluation of 3500
profit % 25%
total comprehensive 122600
URP 3000
ADJUSTED PROFIT OF SENTINEL Co
S.co profit after tax 33000
excess depreciation 200 S.co post acquisition retained earnings
URP -3000
profits 33000
adjusted profit 30200 revaluation 1000
excess dep 200
URP -3000

profit attributable to 111550 post acquis 31200

NCI 7550
total profit 119100

total comprehensive i 114800

NCI 7800
total comprehensive i 122600

(B)

NCI
fair value 100000
S.co post a 7800

NCI at repo 107800

Consolidated reserves

P.co retained earnings 179900

S.co post acquisition 23400

adjustments
URP on NCA -1000

Consolidated reserve 202300

revaluation 10900

321000
Consolidated statement of financial position of paladin Co as at 31 Sep 20 (working area)

ASSETS cost of investment

Non-current assets cash consi 32000

deferred c 5000
Property plant & equipment 74000
intangible assets 10000 Cost of in 37000
investment in associates 7700
Goodwill 15000 Un-winding of discount
Debit credit
Current assets 35100 Consolidat 400
deferred consideratio 400
TOTAL ASSETS 141800
Carrying value of investment in

EQUITY & LIABILITIES Cost of in 10000

post acq pr 200
CAPITAL & RESERVES impaireme -2500

Ordinary share capital 50000 Carrying va 7700

retained earnings 35200
NCI 7900

LIABILITIES

Non-current liabilties

deferred tax 23000

Current liabiltiies

other liabilities 20300

deferred consideration 5400

TOTAL EQUITY & LIABILITES 141800

Net assets of Saracen Co at

acquisitionreporting post acquistion

ordinary sh 10000 10000

retained e 12000 18000
fair value 4000 3000
customer r 3000 2500

TOTAL 29000 33500 4500

Goodwill
cost of investment 37000
fair value of NCI at ac 7000

S.co net assets fair va -29000

Goodwill 15000

NCI
fair value 7000
S.co post a 900

NCI at repo 7900

Consolidated resreves
P.co retain 34900
S.co post 3600

adjustments
un-winding -400
impairemen -2500
post acquis 200
URP -600

consolidat 35200
Consolidated statement of profit/loss & other comprehensive (working area)
(w1)
Revenue 83500 Un-winding of discount
cost of sales -46340 deferred consideration

gross profit 37160 defferred c 7547

operating expenses -28270
Interest ex 453
profit from operation 8890
(w2)
investment income 2200
finance cost -5293 Profit on disposal as per historic cost

profit before tax 5797 disposal p 15000

tax -3040 CV at the d -9900 accumlated

profit for the year 2757 profit on d 5100

other comprehensive income
Profit on disposal as per FV
revaluation gain 4800
disposal p 15000 accumlated
total comprehensive 7557 CV at the d -12600

profit on d 2400
S.co profit after tax 3690
adjustments excess prof 2700 excess dep
Goodwill impairment -300
excess profit -2700 (w3)
excess depreciation -100
inventory h 3000
adjusted profit 590
URP 600
total profit attributab 2639
NCI 118
total profit 2757

total comprehensive i 7299

NCI 258
total comprehensive 7557

(b)
Perd Co Sebastian Co Consolidated

Total asset 297310 110540 407850

Goodwill 2500
URP -600 -600
 NCA revalu 4100 700 4800
Intra-group -7000 -7000
TOTAL ASS 300810 111240 407550

Goodwill
Goodwill at 3200
impaired t -700

Goodwill a 2500
733.3333
367

1100

933.3333
467

1400

100
Consolidated statement of financial position of pyramid Co as at 31 march(working area)
(w1)
ASSETS Cost of investment

Non-current assets share cons 24000

deferred c 6400
Property plant & equ 69000
Investment 2800 cost of in 30400
Goodwill 7400
un-winding of discount
Current assets
consolidat 640
Inventory 25300 deferred consideratio 640
trade recievables 12500
bank 11200 (w2)

TOTAL ASSETS 128200 Net assets of Square Co at

EQUITY & LIABILTIIES acquisitionreporting

Capital & reserves ordinary sh 10000 10000

retained e 18000 26000
ordinary share capital 25000 FV adjustm 3000 2400
share premium 17600 unrecorded -1000 -1000
retained earnings 35780
NCI 8480 TOTAL 30000 37400

LIABILITIES (W3)
Goodwill
Non-current liabilitie 20500
deferred tax 1000 cost of in 30400
fair value 7000
Current liabilities
Net assets -30000
other current liabilitie 12800
deferred consideratio 7040 Goodwill 7400

TOTAL EQUITY AND LIABILITIES 128200

CHECK 0
(w3)
NCI
fair value 7000
S.co post a 1480

NCI 8480

(w4)
Consolidated reserves

P.co retain 30200

S.co post a 5920

adjustments
URP -500
interest ex -640
fair value 800
post acquisition
Consolidat 35780

URP

Unsold goo 1500

7400 URP 500

cash-in-transit
inventory 1500
cash 1200
payable 1700
recievable 2900
recievable 1500
(a) working area
(w1)
Goodwill at the date of acquisition cost of investment

Cost of in (w1) 53400 share exch 39000

fair value of NCI at ac 2500 deferred c 14400

S.co fv of (w2) 47900 cost of in 53400

Goodwill 8000 interest e 1080

(w2)

Net assets of Greca Co at

acquisition date post acquisition

ordinary sh 10000
retained e 36550
fair value 1800
excess depreciation 450
contingent l -450 -450

TOTAL 47900

Consolidated statement of profit/loss for Viagem For the year ended 30 Sep 20X2

Revenue 85900 intra-group sales

cost of sales -64250
intra-group 7200
gross profit 21650
unsold goo 1500
distribution cost -2950
administrative expen -7600 URP 300

investment income 800 profit from investment in associates

finance cost -1500
post profi 800
profit before tax 10400
income tax expense -4000

profit for the year 6400

S.co profit after tax 4650

adjustments
excess depreciation -450
Goodwill impairment -2000

adjusted profits 2200

profit attributable to 6180

NCI 220
total profits 6400
Consolidated statement of financial position of paradigm as at 31 march (working area)
(w1)
ASSETS Cost of investment

Non-current assets share cons 12000

loan notes 1500
Property plant & equ 70400
financial asset 11000 cost of in 13500
Goodwill 8500
Current assets (w2)
Net assets of Strata Co at
inventory 28200 acquisitionreporting
trade recievables 23800
bank 2100 ordinary sh 20000 20000
retained e -6000 4000
fair value -3000 -2500
TOTAL ASSETS 144000 fair value gain of inv 700

EQUITY AND LIABILITIES TOTAL 11000 22200

Capital & reserves (w3)

Goodwill
ordinary share capital 46000
Group retained earni 33925 Cost of in 13500
share premium 6000 fair value 6000
NCI 8800
S.co net as -11000
LIABILITIES
Goodwill 8500
Non-current liabilities

10% loan notes 9575

Current liabilities
adjustments
trade payables 30600
bank overdraft 9100

TOTAL EQUITY AND LIABILITIES 144000

 post acquisition

11200

(w4)

Fair value 6000

S.co post a 2800

NCI 8800

(w5)

Consolidated reserves

P.co retain 26600

S.co post a 8400

adjustments
fair value -400
URP -600
Loan notes -75
consolidat 33925
(a) (working area) (w2)

Goodwill at acq (w1)

uisition date
Cost of investm
ent
Cost of investm (w1) 100,800
ent
add: fair value of NCI 5600 share consderat 69120
at acquisition d ion
ate

deferred consid 31,680

eration
less : Silver Co fair val (w2) -76230
ue of Net assets
at acquisition d
ate

cost of investm 100,800

ent
Goodwill 30,170

un-
winding of disc
ount

interest expens 2,376

e

Consolidated st
atement of prof
it/
loss for the yea
r ended 30 sep
20X2

revenue 143560 (workings)

cost of sales -108610 (w3)

excess deprecia 650

tion on plant
gross profit 34950

(w4)

distrbution cost -4795 URP

adminsitrative e -8885 Gold Co to silve

xpense r Co

investment inco 1200 total intra- 5400

me group sales

finance cost -3,184 inventory unsol 1200

d
profit before ta 19,286 URP 240
x
income tax exp -6400 (w5)
ense
Post profits fro 1200
m associates*4
0%

profit for the ye 12,886

ar
(w6)

convertible loa
n notes
Silver Co profit f 7440 present value o
or the year (aft f liability cashfl
er acquisition) ows

adjustments

excess deprecia -650 future payment discount factor/ present value

tion s annuity factor
adjusted profit 6790 600 3.312 1987.2

10600 0.681 7218.6

profit attributab 12,207 present value o 9,206

le to equity ow f liability
ner of Gold Co

NCI 679 initial considera 10000

tion
total profit 12,886

equity option 794

Un-
winding of disc
ount

A.c b/f interest expens interest paid A.c c/f

e

9,206 736 600 9342.264

Net assets of Sil
ver Co at
acquisition dat reporting date post acquisitio
e n date

ordinary share c 16000 16000

apital

retained earnin 58480 65920

gs
fair value adjust 2600 1950
ment of plant

contingent liabil -850 -850

ity

TOTAL 76230 83020

Consolidated Goodwill at the acquisition date of Sphere Co (working area)
(w1)
Cost of in (w1) 126000
fair value of NCI at ac 75000 deferred c 126000

S.co net as(w2) -196000 un-winding of discount

debit credit
Goodwill 5000 interest e 6300
deferred consideratio 6300

(w2)
Net assets of sphere Co at
acquisitionreporting post acquisition

Ordinary sh 75000 75000

retained e 110000 150000
fair value 6000 4500
customer r 5000 4500

TOTAL 196000

Consolidated statement of profit/loss & other comprehensive income for the year ended 31 march 20X4

Revenue 755000 URP 4000

Cost of sales -457800
800
gross profit 297200
distribution cost -50000
administrative expen -48500

investment income 5800

finance cost -11100

profit before tax 193400

income tax expense -60500

profit for the year 132900

other comprehensive income

revaluation loss -1200

total comprehensive 131700

S.co profit after tax 40000

adjustments
excess depreciation -1500
excess amortisation -500

adjusted profit 38000

PAT TO P.CO EO 117700

NCI 15200
PAT 132900

ATT TO EO 116100
NCI 15600
TCI 131700
post acquisition
(a)
Consolidated statement of financial position of plastik Co as at 30th sep 2 (working area)
Cost of investment
ASSETS
share cons 14400
Non-current assets deferred c 1800

Property plant & equ 37100 cost of in 16200

Goodwill 5700
Un-winding of discount
Current assets 11680
Consolidat 135
TOTAL ASSETS 54480 deferred consideratio 135

(w2)
EQUITY AND LIABILITIES Net assets of subtrak Co at
acquisitionreporting
Capital & reserves
ordinary sh 9000 9000
ordinary share capital 14800 retained e 2000 3500
share premium 9600 fair value 4000 3900
consolidated reserve 7645 revaluation 600
revaluation surplus 2000
NCI 4900 TOTAL 15000 17000

(w3)
Non-current liabilities Goodwill
cost of in 16200
10% convertible loan 2500 fairvalue o 4500

Current liabilities less : S.co fv of -15000

trade payables 11100 Goodwill 5700

deferred consideratio 1935

54480

check 0

revenue

unadjusted revenue 85100

adjustments

intra-group sales -2700

adjusted revenue 82400

cost of sales
unadjusted cost of sal 63800
adjustments

URP 120
intra-group sales -2700
depreciation 100

adjusted cost of sales 61320

finance cost
unadjusted finance co 200

unwinding of discoun 135

adjusted finance cost 335

(w4) (w5)
NCI
Consolidated reserves
fair value 4500
S.co post a 400 P.co retain 6300
S.co post a 1600
NCI 4900
adjustments
URP -120
un-winding -135

Consolidat 7645

(w6)
post acquisition debit credit
overdraft 400
payable 800
recievable 1200

2000
 (working area)
(A)
Goodwill (w1)
Cost of investment
cost of investment 32640
fair value of NCI at ac 6000 share cons 19200
deferred c 13440
fair value of net asset -26845
Cost of in 32640
Goodwill 11795
Un-winding of discount

Revenue interest ex 1008

deferred consideratio 1008
Consolidated revenue 29300
(w2)
cost of sales Net assets of Cyclip Co at
acquisitionreporting post acquisition
Consolidated cost of s 20830
ordinary sh 12000
Finance cost retained e 14125
fair value 720 360
Consolidated finance 1558 borrowing cost capitalised

Profit attributable to NCI TOTAL 26845

profit of cyclip Co (u 1875 (w3)

adjustments
excess depreciation -360 URP 70
Goodwill impairment -500
reversal of interest
adjusted profit 1015

NCI 203
post acquisition
Consolidated statement of financial position for palistar Group as at 30 J (working area)
(w1)
ASSETS
Cost of investment
Non-current assets
share cons 24000
Property plant & equ 83600 deferred c 18000
mobile game rights 10800
financial asset 21100 Cost of in 42000
Goodwill 3000
Entries
Current assets Debit Credit
Cash 24000
Inventory 32600 share capital 6000
Trade recievables 22400 share premium 18000
bank 3800
Deferred consideration
TOTAL ASSETS 177300 Consolidat 900
Deferred considerati 900
EQUITY AND LIABILTIIES
(w2)
Capital & reserves Net assets of Stretcher at
acquisitionreporting
ordinary share capital 26000
consolidated reserve 52425 ordinary sh 20000 20000
other component of e 22000 retained e 18000 24000
NCI 15675 fair value 1000 1900
mobile gam 12000 10800
LIABILITIES impairement of Goodw -3000

Current liabilities 42300 TOTAL 51000 53700

deferred consideratio 18900

TOTAL EQUITY AND LIABILITIES 177300

(w3) (w4)
Goodwill NCI

Cost of in 42000 fair value 15000

fair value 15000 S.co post a 675

Net assets -51000 NCI 15675

Goodwill 6000 (w5)

impaireme -3000 Consolidated reserves
Goodwill a 3000
P.co retain 50200
S.co post a 2025

adjustments
gain on fin 1700
URP -600
un-winding -900

Consolidat 52425

post acquisition URP

unsold goo 1800

proceessed 800

URP 600
ENTRIES
inventory 800
2700 payable 1600
recievables 2400
 (working area)
(A) (w1)
Cost of investment
Consolidated Goodwill at the date of acquisition
share cons 37800
Cost of inv(w1) 51300 deferred c 13500
fair value of NCI at th 12000
Cost of in 51300
RakeWood(w2)
ne -46800
(w2)
Goodwill 16500 Net assets of Rakewood Co at
acquisition date

ordinary sh 15000
retained e 27600
fair value 4000
inventory f 200

TOTAL 46800

Consolidated statement of profit/(loss) for the year ended 30 sep 20X6 for laurel Group

Revenue 112700 (w3)

cost of sales -74700
un-winding of discount
Gross profit 38000
interest e 810
distribution cost -3200 deferred consideratio 810
Admin expenses -6200
investment income 700 (w4)

finance cost -1110 excess depreciation on fair value adjustments

profit before tax 28190
income tax expense -7500 excess fair 4000

profit for the year 20690 depreciati 1500

(w5)
adjusted RakeWood Profit
intra-group 10800
profit (apportioned) 7800
adjustments for URP 300

excess depreciation -1500 (w6)

URP -300
fair value adjustment -200 share of pr 600
Adjusted profit 5800
Profit distribution

profit attributable to 18370

NCI 2320
total profits 20690
 (working area)
Consolidated statement of financial position of Dargent Co as at 31 march (w1)
cost of investment
ASSETS
share cons 32000
Non-current assets loan notes 15000

Property plant & equ 110500 Cost of in 47000

investment in associa 5700
Goodwill 11000 (w2)
Net assets of Latree Co
Current assets at acquisitreporting

Inventory 38100 ordinary sh 20000 20000

recievables 24200 retained e 25000 27000
bank 1800 fair value 4000 4000
fair value -4000 -4000
TOTAL ASSETS 191300 finance cost -80
depreciation on decom -200
EQUITY AND LIABILITIES TOTAL 45000 46720

Capital & reserves (w3)

Goodwill
ordinary share capital 60000
retained earnings 37390 Cost of in 47000
share premium 22000 fair value 9000
NCI 9430
Latree Co n -45000
Liabilities
Goodwill 11000
Non-current liabilities

8% loan notes 20000

provision for dismantl 4080
Current liablities

other current liabilitie 38100

accrued interest 300

TOTAL EQUITY & LIABILITIES 191300

Check 0
(w4)
NCI
fair value 9000
Latree Co 430

NCI for SO 9430

(w5)
Consolidated reserves

post acquisDargent Co 36000

Latree Co 1290
adjustments
interest on -300
URP -800
share of pr 1200

consolidat 37390
1720

(w6)
URP
inventory u 2100

URP 600

goods in transit
URP 200

(w7)
carrying value of investment in associates

cost of in 4500
share of p 1800
dividends -600

Carrying va 5700

(w8)
Debit Credit
inventory 700
payable 2300
recievables 3000
Consolidated statement of financial position of Party Co as at 3 (Working area)
(w1) (w4)
ASSETS Cost of investment NCI
fair value
Property plant & equ 476000 cash consi 92000 S.co post a
Goodwill 32396 deferred c 23996
NCI
Current assets 139160 Cost of in 115996
(w5)
TOTAL ASSETS 647556 Un-Winding of discount Consolidated reserves
Debit Credit
adjustme
EQUITY AND LIABILITIES Consolidat 1920 nts
Deferred considerati 1920
EQUITY
equity shares 190000 (w2)
consolidated reserves 209398 Net assets of Streamer Co at
revaluation surplus 41400 acquisitionreporting Post acquisition
NCI 15392
Ordinary sh 60000 60000
Non-current liabilities retained e 34000 36500
revaluation 4000 4000
deferred consideratio 25916 fair value 600 60

Current liabilities 165450 TOTAL 98600 100560 1960

TOTAL EQUITY AND LIABILITIES 647556

(w3)
Goodwill

Cost of investment 115996

fair value of NCI at ac 15000

Streamer Co net assets -98600

Goodwill 32396

(b)
 15000
392

15392

Consolidated reserves

P.co retain 210000

S.co post a 1568

Un-winding -1920
URP -250
Post acquisition
Consolidat 209398
 (working area)
Consolidated statement of financial position of Runner Co as a (w1)
cost of investment (w5)
ASSETS Consolidated reserves
Non-current assets cash consi 42500 P.co retain
deferred c 19446 J.co post a
Property plant & equ 509500
Investments 12500 Cost of in 61946 adjustments
Goodwill 20446 Un-winding
(w2)
Current assets Net assets of Jogger Co at Consolidat
Inventory 37280 acquisitionreportig dapost acquisition
trade recievables 37900
bank 7300 ordinary sh 25000 25000 (w3)
retained e 19500 28600
TOTAL ASSETS 624926 fair value 10000 9000
URP -720
EQUITY & LIABILITIES
TOTAL 54500 61880 7380
EQUITY
(W3) (w4)
equity share 202500 Goodwill NCI
consolidated reserves 290948 fair value
NCI 14476 Cost of in 61946 S.co post a
fair value 13000
Current liabilities NCI for SO
Trade payable 96000 Jo.co net a -54500
deferred consideratio 21002
Goodwill 20446
TOTAL EQUITY AND LIABILITIES 624926

Check 0

(B)

the 30% of holding in walker Co of runner Co represents significant influence over the walker Co
means that the walker Co is an associate of runner Co. and runner Co should do equity accounting in
its consolidated books. and should account for as associates. The carrying value of investment in associates is calculated as fol

cost of in 13000
share of l -9000

carrying va 4000
 Consolidated reserves
286600
5904

adjustments
-1556

290948
post acquisition

bank 3000
payables 3400
recievables 6400

13000
1476

14476

n associates is calculated as follow

(A)- Consolidated statement of profit/(loss) & other comprehensive income for plank Co for the year ended 31 dec 20X8
(working area)
Revenue 829500 (w1)
Cost of sales -346000 Fair value adjustment of machinery

gross profit 483500 fair value 8000

distribution cost -70000 excess dep 2000

administrative expen -113000 (w2)
intra-group sale of Plank Co to strip Co
investment income 45250
Intra-grou 39000
finance cost -18750
Unsold Goo 9750
profit before tax 326999.5
income tax expenses -62750 URP 2250

profit for the year 264250 (w3) & (w4)

OTHER COMPREHENSIVE INCOME dividends r 15300

Gain on revaluation o 5800
associates
Total comprehensive 270050 share of pr 32399
less : URP -2100

S.co profit after tax 48250 adjusted as 30299

adjustments
excess depreciation on -2000 dividends r 12250

adjusted profit after 46250

Profits attributable t 257312

NCI 6937.5
total profits 264250

comprehensive income 262662

NCI 7387.5
total comprehensive 270050

(b)-carrying value of investment in associates

carrying value of Arch 145000

share of profits 32399
URP -2100
dividends received -12250
carrying value of inve 163050
e year ended 31 dec 20X8
 (working area)
(A)-Consolidated Goodwill of sing Co at acquisition date (w1)

Cost of investment 47360 Cost of investment

Sing Co net assets at -30912 Share cons 34560

Deferred c 12800
Goodwill 16448
Cost of in 47360

(B)-Consolidated statement of profit/(loss) & OCI for the y/e 3 un-winding of discount
Debit Credit
Revenue 71780 interest e 960
Cost of sales -44460 deferred consideratio 960

gross profit 27320 (w2)

distribution cost -2398 Net assets of Sing Co at
admin expense -5443 acquisition date

investment income 300 ordinary sh 8000

retained e 29240
finance cost -1364 fair value 1800
contingent l -400
profit before tax 18416
income tax expense -3200 TOTAL 38640

profit for the year 15216 (w3)

fair value adjustment

excess dep 450

S.co Profit after tax 3720 (w4)

adjustments intra-group sales
excess depreciation -450
URP -150 intra-group 2700

adjusted profit 3120 unsold Goo 600

URP 150

profit attributable to 14592 (w5)

NCI 624 share of profits from associates
total profit 15216
total profit 1000
Chang Co s 30%

share of pr 300
(w6)
Convertible loan notes

present value of liability cashflows

future valudiscount fapresent value

300 3.312 993.6

5300 0.681 3609.3

present val 4603

intitial con 5000

equity 397

un-winding

A.c b/f interest e interest paA.c c/f

4603 368 300 4671

Consolidated statement of profit/(loss) for zeffer Co for the year ended 30 Sep 20X3
(working area)
Profit from continued operations (w1)
Revenue 83800 fair value adjustment
Cost of sales -41770 fair value 400
excess dep 80
gross profit 42030 (w2)
Operating expenses -19200 Intra-group sales
total good 1200
finance cost -3000
unsold goo 300
profit before tax 19830 URP 90
income tax expense -5600
(w3)
profit for the year f 14230 gain/(loss) on disposal of shem Co
add :
profit from disontinu 2400 disposal p 6200
profit on disposal of 200
Less: Net assets -7400
total profit 16830 Less: Goodwill at -450

Add: NCI at disp 1850

Profits distrbution gain on dis 200

Goodwill
profit attributable to 15544 Cost of in 3500
NCI 1286
total profits 16830 less : Shem Co ne -2850

Goodwill 650
impairmen -200

Goodwill at 450

Net assets of Sheem Co at

Jaco Co profits adjusted acquisitiondisposal d post acquisition

Jaco Co profits 3600 net assets 3800 7400 3600

adjustments
NCI
excess dep -80 S.co net as 950
URP -90 add: post acqui 900

adjusted profit 3430 NCI at disp 1850