The statements of financial position of Jumbo plc and of Nipper plc, on the date that Jumbo
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Assume that the statement of financial position values of Nipper plcs assets represent fair values. Prepare the group statement of financial position immediately following the share acquisition.
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Statements of financial position as at 31 March Nipper plc £m Jumbo plc £m ASSETS Non-current assets Property, plant and equipment Land 84 18 Plant 34 33 Vehicles 45 12 163 63 Investment 12 million shares of Nipper plc 24 187 63 Current assets Inventories 55 32 Trade receivables 26 44 Cash 10 14 95 86 282 Total assets 149 EQUITY AND LIABILITIES Equity Called-up share capital: ordinary shares of £1 each, fully paid Share premium account Retained earnings 100 20 12 8. 141 40 Non-current assets Borrowings - loan notes 100 70 Current liabilities Trade payables Total equity and liabilities 39 282 149
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Related Book For
Financial Accounting for Decision Makers
ISBN: 978-0273763451
6th Edition
Authors: Peter Atrill, Eddie McLaney
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