Golden Bowl Co is a 30-year-old restaurant and caterers. Fifteen 15 years ago it acquired a...

 

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Golden Bowl Co is a 30-year-old restaurant and caterers. Fifteen 15 years ago it acquired a 100% interest in Bow Wow Restaurant. In 2010 it acquired a 40% interest in a competitor, Chungs Restaurant and on 1 January 2018 it acquired a 75% interest in Jade Garden Restaurant. The draft consolidated accounts for the Golden Bowl Group are as follows. DRAFT CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2018 $'000 Operating profit Share of profit after tax of associate Income from long investment Interest payable Profit before taxation Tax on profit Income tax Deferred taxation Profit for the year Attributable to: owners of the parent non-controlling interest 1,173 312 $'000 4,455 1050 465 (450) 5,520 1485 4,035 3.735 300 4.035 DRAFT CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER Assets Non-current assets Tangible assets Buildings at net book value Machinery: cost aggregate depreciation net book value Goodwill Investments in associates Long-term investments Current assets Inventories Receivables Cash Equity and liabilities Equity Share capital: 25c shares Share premium account Retained earnings - Predictions: On Accessibility: Investigate 2018 $'000 4,200 (3,300) $'000 2017 $000 $'000 $'000 3,000 3,825 5,460 6,000 6,285 7.500 6,600 2018 900 7,500 3,000 1,230 11,730 $'000 12,285 24,015 9,000 (3,600) $'000 5,925 5,550 13,545 6,225 2017 11,820 8,649 10.335 5,400 11,625 300 3,300 1,230 16,455 $'000 25,020 41,475 Non-controlling interest Non-current liabilities Obligations under finance leases Loans Deferred tax Current liabilities Trade payables Obligations under finance leases Income tax Accrued interest and finance charges 510 1,500 39 840 600 651 90 19,785 2,049 2,181 24.015 Note 1. There had been no acquisitions or disposals of buildings during the year. 345 2,130 4,380 90 1,500 720 1,386 120 31,149 6,600 3,726 41.475 Machinery costing $1.5m was sold for $1.5m resulting in a profit of $300,000. New machinery was acquired in 2018 including additions of $2.55m acquired under finance leases. 2. Information relating to the acquisition of Jade Garden restaurant Machinery Inventories Trade receivables Cash Trade payables Income tax Non-controlling interest Goodwill 2,640,000 shares issued as part consideration Balance of consideration paid in cash $'000 495 96 84 336 (204) (51) 756 (189) 567 300 867 825 42 867 3. Loans were issued at a discount in 2018 and the carrying amount of the loans at 31 December 2018 included $120,000 representing the finance cost attributable to the discount and allocated in respect of the current reporting period. Required Prepare a consolidated statement of cash flows for the Golden Bowl Group for the year ended 31 December 2018 as required by IAS 7, using the indirect method. There is no need to provide notes to the statement of cash flows. 30 Marks Golden Bowl Co is a 30-year-old restaurant and caterers. Fifteen 15 years ago it acquired a 100% interest in Bow Wow Restaurant. In 2010 it acquired a 40% interest in a competitor, Chungs Restaurant and on 1 January 2018 it acquired a 75% interest in Jade Garden Restaurant. The draft consolidated accounts for the Golden Bowl Group are as follows. DRAFT CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2018 $'000 Operating profit Share of profit after tax of associate Income from long investment Interest payable Profit before taxation Tax on profit Income tax Deferred taxation Profit for the year Attributable to: owners of the parent non-controlling interest 1,173 312 $'000 4,455 1050 465 (450) 5,520 1485 4,035 3.735 300 4.035 DRAFT CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER Assets Non-current assets Tangible assets Buildings at net book value Machinery: cost aggregate depreciation net book value Goodwill Investments in associates Long-term investments Current assets Inventories Receivables Cash Equity and liabilities Equity Share capital: 25c shares Share premium account Retained earnings - Predictions: On Accessibility: Investigate 2018 $'000 4,200 (3,300) $'000 2017 $000 $'000 $'000 3,000 3,825 5,460 6,000 6,285 7.500 6,600 2018 900 7,500 3,000 1,230 11,730 $'000 12,285 24,015 9,000 (3,600) $'000 5,925 5,550 13,545 6,225 2017 11,820 8,649 10.335 5,400 11,625 300 3,300 1,230 16,455 $'000 25,020 41,475 Non-controlling interest Non-current liabilities Obligations under finance leases Loans Deferred tax Current liabilities Trade payables Obligations under finance leases Income tax Accrued interest and finance charges 510 1,500 39 840 600 651 90 19,785 2,049 2,181 24.015 Note 1. There had been no acquisitions or disposals of buildings during the year. 345 2,130 4,380 90 1,500 720 1,386 120 31,149 6,600 3,726 41.475 Machinery costing $1.5m was sold for $1.5m resulting in a profit of $300,000. New machinery was acquired in 2018 including additions of $2.55m acquired under finance leases. 2. Information relating to the acquisition of Jade Garden restaurant Machinery Inventories Trade receivables Cash Trade payables Income tax Non-controlling interest Goodwill 2,640,000 shares issued as part consideration Balance of consideration paid in cash $'000 495 96 84 336 (204) (51) 756 (189) 567 300 867 825 42 867 3. Loans were issued at a discount in 2018 and the carrying amount of the loans at 31 December 2018 included $120,000 representing the finance cost attributable to the discount and allocated in respect of the current reporting period. Required Prepare a consolidated statement of cash flows for the Golden Bowl Group for the year ended 31 December 2018 as required by IAS 7, using the indirect method. There is no need to provide notes to the statement of cash flows. 30 Marks

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