Plus Limited & Shoe Limited - Marks 08

Practice Q&A (FR251) Basic Consolidation

 Plus Limited
Consolidated Statement of financial Position
As at 31 December 2021

Non-current assets Rs. 000

Property, plant & equipment [45,000 + 15,000] 60,000
Goodwill W3 25,200

Current assets [28,000 + 12,000] 40,000

125,200

Equity
Share Capital [Parent only] 5,000
Retained earnings (group) W5 80,000

Non-Controlling Interest W4 2,200

Non-current liabilities [2,000 + 6,000] 8,000

Current liabilities [20,000 + 10,000] 30,000
125,200
W1 Group Strcuture
Subsidiary Shoe Limited
Acquisition date Several years ago
Parent ownership 80%
Non-controlling interest 20%
Goodwill method Partial

Acq. date Post Acq. SFP date

W2 Net Assets of Subsidiary
Rs. 000 Rs. 000 Rs. 000
Share capital 1,000 1,000
Retained earnings 5,000 5,000 10,000
6,000 5,000 11,000

W3 Goodwill Rs. 000

Investment 30,000
NCI at Acquisition [6,000 W2 x 20%] 1,200
31,200
- NA of subsidiary at acquisition W2 (6,000)
Goodwill at acquisition & SFP 25,200

W4 Non-Controlling Interest Rs. 000

NCI at Acquistion [6,000 W2 x 20%] 1,200
+ NCI share of post-acquisition [5,000 W2 x 20%] 1,000
2,200

W5 Group Retained Earnings Rs. 000

Parent’s reserves (100%) 76,000
Subsidiary’s post-acquisition x P% [5,000 W2 x 80%] 4,000
80,000