Prepare the consolidation statement of financial position as at 31 December 20X0 of Ala Ltd and its subsidiaries.

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The following are the summarised statements of financial position of a group of companies as at 31 December 20X0. You are given the following information: Bla ltd Ala Ltd £'000 Cla Ltd £'000 £'000 Non-current Assets PPE 90 60 50 Investments 40,000 £1 shares in Bla 50 30,000 £1 shares in Cla 45 Total Non-current Assets 185 60 50 215 50 30 Current Assets Total Assets 400 110 80 Equity 190 50 40 Ordinary Share Capital Revaluation surplus 10 Retained Earnings 60 30 16 250 90 56 Total Equity Non-current Liabilities Current Liabilities Trade Payables 150 20 24 Total Equity and Liabilities 400 110 80 1) Ala Ltd purchased its shares in Bla Ltd five years ago when there were retained earnings of £20,000 and a balance on its revaluation surplus of £10,000. 2) Cla Ltd had retained earnings of £16,000 when Ala Ltd acquired its shares on 1 January 20X0. 3) At the end of 20X0 the goodwill impairment review revealed a loss of £300 in relation to the goodwill acquired in the business combination with Cla Ltd. 4) During November 20X0, Bla Ltd had sold goods to Cla Ltd for £12,000 at a mark-up on cost of 20%. Half of these goods were still held by Cla Ltd at 31 December 20X0. The following are the summarised statements of financial position of a group of companies as at 31 December 20X0. You are given the following information: Bla ltd Ala Ltd £'000 Cla Ltd £'000 £'000 Non-current Assets PPE 90 60 50 Investments 40,000 £1 shares in Bla 50 30,000 £1 shares in Cla 45 Total Non-current Assets 185 60 50 215 50 30 Current Assets Total Assets 400 110 80 Equity 190 50 40 Ordinary Share Capital Revaluation surplus 10 Retained Earnings 60 30 16 250 90 56 Total Equity Non-current Liabilities Current Liabilities Trade Payables 150 20 24 Total Equity and Liabilities 400 110 80 1) Ala Ltd purchased its shares in Bla Ltd five years ago when there were retained earnings of £20,000 and a balance on its revaluation surplus of £10,000. 2) Cla Ltd had retained earnings of £16,000 when Ala Ltd acquired its shares on 1 January 20X0. 3) At the end of 20X0 the goodwill impairment review revealed a loss of £300 in relation to the goodwill acquired in the business combination with Cla Ltd. 4) During November 20X0, Bla Ltd had sold goods to Cla Ltd for £12,000 at a mark-up on cost of 20%. Half of these goods were still held by Cla Ltd at 31 December 20X0.

Answer rating: 100% (QA)

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