ME-1 Ltd. acquired 80% equity shares of You-2nd Ltd. on 30/04/2020 for a cost of GHS60,000....

   

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ME-1" Ltd. acquired 80% equity shares of You-2nd Ltd. on 30/04/2020 for a cost of GHS60,000. At that time the general reserves were GHe6,000 respectively. Their balance sheets before business combination as at 30/04/2022 are as follows: ME-1" Ltd. GHe 43,000 10,000 Tangible non-current assets Other intangible assets Investments at costs Current assets Financed by Equity share capital at GHél each Retained earnings General reserves Current liabilities Note: Retained earnings (losses) of You Ltd.: 30/04/2020 30/04/2021 30/04/2022 Total frust 70,000 22,000 145.000 You-2nd Ltd., GHe 45.000 20,000 15.000 15.000 95.000 80,000 36,000 10.000 19,000 145.000 GHe (10,000) 18,000 16,000 24,000 40.000 24,000 15.000 16,000 95.000 The 20% equity shares not acquired was fair-valued at GHe23.700. Included the ME-1" Ltd.'s investment in You-2 Ltd. is the cash they paid of GHe42,000. Y Lid. agreed to receive Gile 18,000 of the investment cost amount from ME-1" d three years' time. Take 3-year discounting factor to be 0.512. Under the agreement associated with the acquisition, additional monies may be payable at later date subject to the You-2 Ltd. meeting its profit target of GHe 30,000 in 2022 after the acquisition the fair value of this consideration is GHe 10,000. Ignore any deferred tax implications on the acquisition after two years' time. Required: Prepare the consolidated statement of financial position (balance sheets ME-1" Ltd. and its subsidiary as at 30/04/2022 for internal use in accordance with the Companies Act, 2019 Act 992, section 131 and IFRS 3 Business Combination other applicable IFRSS for internal use. ME-1" Ltd. acquired 80% equity shares of You-2nd Ltd. on 30/04/2020 for a cost of GHS60,000. At that time the general reserves were GHe6,000 respectively. Their balance sheets before business combination as at 30/04/2022 are as follows: ME-1" Ltd. GHe 43,000 10,000 Tangible non-current assets Other intangible assets Investments at costs Current assets Financed by Equity share capital at GHél each Retained earnings General reserves Current liabilities Note: Retained earnings (losses) of You Ltd.: 30/04/2020 30/04/2021 30/04/2022 Total frust 70,000 22,000 145.000 You-2nd Ltd., GHe 45.000 20,000 15.000 15.000 95.000 80,000 36,000 10.000 19,000 145.000 GHe (10,000) 18,000 16,000 24,000 40.000 24,000 15.000 16,000 95.000 The 20% equity shares not acquired was fair-valued at GHe23.700. Included the ME-1" Ltd.'s investment in You-2 Ltd. is the cash they paid of GHe42,000. Y Lid. agreed to receive Gile 18,000 of the investment cost amount from ME-1" d three years' time. Take 3-year discounting factor to be 0.512. Under the agreement associated with the acquisition, additional monies may be payable at later date subject to the You-2 Ltd. meeting its profit target of GHe 30,000 in 2022 after the acquisition the fair value of this consideration is GHe 10,000. Ignore any deferred tax implications on the acquisition after two years' time. Required: Prepare the consolidated statement of financial position (balance sheets ME-1" Ltd. and its subsidiary as at 30/04/2022 for internal use in accordance with the Companies Act, 2019 Act 992, section 131 and IFRS 3 Business Combination other applicable IFRSS for internal use.

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ME1st Limited Group Consolidated Statement of Financial Position As at April 30 2022 Assets Ta... View the full answer