Question: The comparative consolidated statement of financial position at December 31

The comparative consolidated statement of financial position at December 31, Year 2, and the consolidated income statement for Year 2, of Parent Ltd. and its 70%-owned subsidiary are shown below.
Additional Information
• On December 31, Year 1, Parent owned 100% of Sub. On this date, the share holders’ equity of Sub amounted to $1,120,000, and the parent’s unamortized acquisition differential of $565,000 was allocated entirely to the goodwill of Sub.
• On January 1, Year 2, Parent sold 30% of its shares of Sub for $629,000 cash and recorded an increase to retained earnings of $123,500 on the transaction. Parent uses the equity method to account for its investment.
• Parent paid $104,000 in dividends during Year 2.
Required:
Prepare, in good form, a consolidated cash flow statement for Year 2 in accordance with the requirements of IAS 7.



Sale on SolutionInn
Sales0
Views72
Comments
  • CreatedJune 08, 2015
  • Files Included
Post your question
5000