Consolidated Statement of Financial Position

sophie_612

Hi,

Please can someone help me and tell me how to do this, I have attached the original question, answers and additional info.

Thanks
Sophie

sophie_612

can anyone help please?

sophie_612

@Clintm15 can you help me please?

Duchess1

sophie, which bit do you need help with?

Duchess1

I think it is as follows;

Goodwill-

consideration 420
net assets acquired share capital 240 + adj to fair value 100 + retained earnings 20 = (360)
non controlling interest is 20% of 360 = 72
impairment (25)
--------------------------
total 107

PPE
1520 + 241 = 1761
plus adj to fair value 100
-------
total 1861

Retained earnings
Texas pls 172
Houston Ltd - attributable to Texas pc (60-20*) * 80% = 32
(*20 is retained earnings at time of purchase)
impairment to goodwill (25)
---------------
total 179

The rest you just add up. Except the following-

* trade receivables = 126+30-6 intercompany balance = 150
* share capital only use the share capital of Texas PLC
* retained earnings as calculated above
* non controlling interest is (100 adj to fair value + 240 shares + 60 retained earnings) * 20% = 80
* trade payables 103 + 26 - 6 (intercompany) = 123

I think that's it!

sophie_612

@Duchess1 thank you so much

barney77

I was just looking at this as taking exam on Thursday and was wondering how they got the net assests for goodwill.

Thank you so much, it now makes sense!