2. 3. Question 3 Serena Ple acquired 85% of the share capital of Venus Ltd on...

  

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2. 3. Question 3 Serena Ple acquired 85% of the share capital of Venus Ltd on 1 January 2016 when Venus Lid's retained earnings were €4,900,000. Their individual Statements of Financial Position for Serena Plc and Venus Ltd at 31 December 2016 are: Venus Ltd 4. Assets Non-current assets Property, plant and equipment Investment at cost Current assets Inventories Trade receivables Cash and cash equivalents Total assets Equity and liabilities Equity Ordinary share capital Retained earnings Non-current liabilities Long term loan Current liabilities Trade payables Accruals Total equity and liabilities Serena Ple € '000 3,525 5,885 2,885 4,305 405 € '000 20,655 5,125 25,780 12,295 38,075 7,500 25,115 32,615 750 4,710 38,075 € '000 1,480 1,860 860 2,045 400 € '000 4,875 4,875 4,200 9,075 Additional Information: 1. During 2016 Venus Ltd sold goods to Serena Ple for € 2,250,000. Venus Ltd sells all goods to achieve a gross profit margin of 40%. Serena Ple's inventory at year end included € 750,000 of goods purchased from Venus Ltd. Venus Ltd's trade receivables include a balance of € 187,500 owed from Serena Plc. Serena Ple's trade payables include a balance of € 150,000 owed to Venus Ltd. Serena Ple made a BACS payment of € 37,500 to Venus Ltd on 31 December 2016. The BACS payment was received in Venus Ltd's bank account on 3 January 2017. Ltd by Serena Ple the fair value of plant with a useful economic life of 3 years at 31" December 2015 was € 900,000. The net book value of this plant at acquisition was €720,000. Following a due diligence of Venus 1,500 5,130 6,630 2,445 9,075 Requirement: Prepare the consolidated statement of financial position for Serena Group as at 31 December 2016, showing the following accounts: Cost of Control Non-controlling Interests Consolidated Reserves 2. 3. Question 3 Serena Ple acquired 85% of the share capital of Venus Ltd on 1 January 2016 when Venus Lid's retained earnings were €4,900,000. Their individual Statements of Financial Position for Serena Plc and Venus Ltd at 31 December 2016 are: Venus Ltd 4. Assets Non-current assets Property, plant and equipment Investment at cost Current assets Inventories Trade receivables Cash and cash equivalents Total assets Equity and liabilities Equity Ordinary share capital Retained earnings Non-current liabilities Long term loan Current liabilities Trade payables Accruals Total equity and liabilities Serena Ple € '000 3,525 5,885 2,885 4,305 405 € '000 20,655 5,125 25,780 12,295 38,075 7,500 25,115 32,615 750 4,710 38,075 € '000 1,480 1,860 860 2,045 400 € '000 4,875 4,875 4,200 9,075 Additional Information: 1. During 2016 Venus Ltd sold goods to Serena Ple for € 2,250,000. Venus Ltd sells all goods to achieve a gross profit margin of 40%. Serena Ple's inventory at year end included € 750,000 of goods purchased from Venus Ltd. Venus Ltd's trade receivables include a balance of € 187,500 owed from Serena Plc. Serena Ple's trade payables include a balance of € 150,000 owed to Venus Ltd. Serena Ple made a BACS payment of € 37,500 to Venus Ltd on 31 December 2016. The BACS payment was received in Venus Ltd's bank account on 3 January 2017. Ltd by Serena Ple the fair value of plant with a useful economic life of 3 years at 31" December 2015 was € 900,000. The net book value of this plant at acquisition was €720,000. Following a due diligence of Venus 1,500 5,130 6,630 2,445 9,075 Requirement: Prepare the consolidated statement of financial position for Serena Group as at 31 December 2016, showing the following accounts: Cost of Control Non-controlling Interests Consolidated Reserves

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Which of the following may be a source of paidin capital Sharebased compensation acti... View the full answer