The statement of financial position for Tight and its subsidiary Loose, as at 31 December 2022...

  

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The statement of financial position for Tight and its subsidiary Loose, as at 31 December 2022 is stated below: Assets Non-current Assets: Property plant and Equipment Investment in Loose Current Assets: Inventory Receivables Bank Total Assets Equity and Liabilities Equity: Share capital Share premium Retained earnings Non-current Liabilities Current Liabilities Total Equity and Liabilities Tight £,000 20.000 6,800 26.800 18,000 22,000 2,000 42,000 68,800 2,000 1,000 31.800 34,800 24,000 10.000 68,800 Loose £,000 6,000 6,000 4,000 5.000 1,000 10,000 16,000 600 400 6,200 7,200 5,600 3,200 i. ii. iii. On 1 January 2021 Tight acquired 90% of the ordinary share capital of Loose for £6,800,000, when the retained earnings of Loose stood at £1,000,000. Loose sold goods to Tight at a transfer price of £3,600,000 at a mark-up of 50%. Two-third of these goods remained in inventory at the year end. Goodwill has suffered an impairment of £2,000,000. Tight uses the fair value method to value non-controlling interest and the non-controlling interest at acquisition was £800,000. Required Prepare a consolidated statement of financial position as at 31 December 2022. The statement of financial position for Tight and its subsidiary Loose, as at 31 December 2022 is stated below: Assets Non-current Assets: Property plant and Equipment Investment in Loose Current Assets: Inventory Receivables Bank Total Assets Equity and Liabilities Equity: Share capital Share premium Retained earnings Non-current Liabilities Current Liabilities Total Equity and Liabilities Tight £,000 20.000 6,800 26.800 18,000 22,000 2,000 42,000 68,800 2,000 1,000 31.800 34,800 24,000 10.000 68,800 Loose £,000 6,000 6,000 4,000 5.000 1,000 10,000 16,000 600 400 6,200 7,200 5,600 3,200 i. ii. iii. On 1 January 2021 Tight acquired 90% of the ordinary share capital of Loose for £6,800,000, when the retained earnings of Loose stood at £1,000,000. Loose sold goods to Tight at a transfer price of £3,600,000 at a mark-up of 50%. Two-third of these goods remained in inventory at the year end. Goodwill has suffered an impairment of £2,000,000. Tight uses the fair value method to value non-controlling interest and the non-controlling interest at acquisition was £800,000. Required Prepare a consolidated statement of financial position as at 31 December 2022.

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