Heights Ltd acquired all the shares in Salitex Ltd on the 31st December 2014 at a cost
Question:
Heights Ltd acquired all the shares in Salitex Ltd on the 31st December 2014 at a cost of UGX 100,000,000. The information below provides the statements of Financial Position for both companies on the 31st December 2014.
Non-current assets Current assets
Cash Accts receivable Total Assets
Heights Ltd (UGX '000') 120,000
Salitex Ltd (UGX '000') 80,000
Statement of financial position as at 31st Dec.2014.
180,000 40,000
220,000 340,000
80,000 30,000
110,000 190,000
100,000 -------
90,000 190,000
(15 Marks) (10 Marks)
SHARE CAPITAL &LIABILITIES.
Ordinary share capital 280,000 Profit & loss 30,000 Current liabilities 30,000
340,000
Required: With reference to IFRS 3
i) Update the balance sheets for Heights Ltd and Salitex Ltd
ii) Prepare the consolidated Balance sheet for the group.
Financial Accounting
ISBN: 978-1259103285
5th Canadian edition
Authors: Robert Libby, Patricia Libby, Daniel Short, George Kanaan, M