Task 01 The statements of financial position of Muscat Co. and Sohar Co. as at 30...

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Task 01 The statements of financial position of Muscat Co. and Sohar Co. as at 30 June 2022 are +given below: Muscat Co OMR Sohar Co OMR Non-current assets Property, plant & equipment 16,000 9500 Investments 5000 - 21000 9500 Current assets Inventory Receivables Cash Share capital Share Premium Retained earnings 2500 3000 3000 2000 2,000 7500 5000 28500 14500 6000 5000 6000 10500 7500 22500 12500 Non-current liabilities: 8% Loan 2000 500 notes Current liabilities 4000 1500 28500 14500 Muscat Co. acquired 70% shares of Sohar Co. on 1st July 2021 when the retained earnings of Sohar Co. was OMR 4,800. Muscat Co. paid OMR4,900 in cash. Muscat Co. also issued 2, OMR1 share for every 5 shares acquired in Sohar Co. and agreed to pay a further OMR 2,100 in 4 years' time. The market value of Muscat Co.'s shares on 1 July 2021 was OMR1.70. Muscat Co. has only recorded the cash paid in respect of the investment in Sohar Co. Current interest rates are 4%. The Muscat Co. group uses the fair value method to value the non- controlling interest. At the date of acquisition, the fair value of the non-controlling interest was OMR 5500. Page 4 of 9 Requirement: (a) Determine the total fair value of the consideration transferred for an acquisition and calculate the goodwill. Explain the basis of your calculation and any assumptions made. (b) Prepare consolidated statement of financial position as at 30 June 2022. Task 01 The statements of financial position of Muscat Co. and Sohar Co. as at 30 June 2022 are +given below: Muscat Co OMR Sohar Co OMR Non-current assets Property, plant & equipment 16,000 9500 Investments 5000 - 21000 9500 Current assets Inventory Receivables Cash Share capital Share Premium Retained earnings 2500 3000 3000 2000 2,000 7500 5000 28500 14500 6000 5000 6000 10500 7500 22500 12500 Non-current liabilities: 8% Loan 2000 500 notes Current liabilities 4000 1500 28500 14500 Muscat Co. acquired 70% shares of Sohar Co. on 1st July 2021 when the retained earnings of Sohar Co. was OMR 4,800. Muscat Co. paid OMR4,900 in cash. Muscat Co. also issued 2, OMR1 share for every 5 shares acquired in Sohar Co. and agreed to pay a further OMR 2,100 in 4 years' time. The market value of Muscat Co.'s shares on 1 July 2021 was OMR1.70. Muscat Co. has only recorded the cash paid in respect of the investment in Sohar Co. Current interest rates are 4%. The Muscat Co. group uses the fair value method to value the non- controlling interest. At the date of acquisition, the fair value of the non-controlling interest was OMR 5500. Page 4 of 9 Requirement: (a) Determine the total fair value of the consideration transferred for an acquisition and calculate the goodwill. Explain the basis of your calculation and any assumptions made. (b) Prepare consolidated statement of financial position as at 30 June 2022.