FINANCIAL

REPORTING
Consolidation 1
 Example 1 P S
‘000 ‘000
Non-Current Assets 60,000 50,000
Investment in S (at cost) 50,000
Current Assets 40,000 40,000
150,000 90,000

Ordinary Share Capital 100,000 40,000

Retained Earnings 30,000 10,000
Current Liabilities 20,000 40,000
150,000 90,000

P purchased 100% shares in S on 30.6.2016, at a cost of 50,000.

 Example 2 P S
‘000 ‘000
Non-Current Assets 60,000 50,000
Investment in S (at cost) 60,000
Current Assets 40,000 40,000
160,000 90,000

Ordinary Share Capital 100,000 40,000

Retained Earnings 40,000 10,000
Current Liabilities 20,000 40,000
160,000 90,000

P purchased 100% shares in S on 30.6.2016, at a cost of 60,000.

 (Copy this question) P S
‘000 ‘000
Non-Current Assets 60,000 50,000
Investment in S (at cost) 50,000
Current Assets 60,000 40,000
170,000 90,000

Ordinary Share Capital 100,000 40,000

PRetained
purchased Earnings
60% shares in S on 30.6.2016,30,000 10,000The
at a cost of 50,000.
fair value Liabilities
Current of the 40% non-controlling interest40,000
is 30,000. 40,000
170,000 90,000
Prepare SOFP as at 30.6.2016
 Next Year P S
‘000 ‘000
Non-Current Assets 77,000 55,000
Investment in S (at cost) 50,000
Current Assets 53,000 45,000
180,000 100,000

POrdinary
purchased Share
60%Capital
shares in S on 1.7.2016, 100,000 40,000
at a cost of 50,000. The
Retained
fair value ofEarnings
the 40% non-controlling interest35,000 25,000
is 30,000 on 1.7.2016.
The ShareLiabilities
Current Capital and Retained Earnings of45,000
S was 40,00035,000
and
10,000 respectively on 1.7.2016 180,000 100,000

Prepare SOFP as at 30.6.2017

 Copy the Question P S
‘000 ‘000
Non-Current Assets 101,000 55,000
Investment in S (at cost) 14,000
Current Assets 65,000 45,000
180,000 100,000
P purchased 60% shares in S on 1.7.2016. P paid 14,000 in cash,
and issued 1 share of P against 1 share of S. One share of P had a
Ordinary Share Capital 100,000 40,000
fair value of 1.5 on 1.7.2016. The fair value of the 40% non-
Retained Earnings
controlling 35,000
interest is 30,000 on 1.7.2016. The 25,000
Share Capital and
Current Liabilities
Retained Earnings of S was 40,000 and 10,00045,000 35,000
respectively on
1.7.2016. The investment in S is being shown at the Cash100,000
180,000 amount
paid by P, and issue of shares are not recorded.
Prepare SOFP as at 30.6.2017.