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.
Prepare, in good form, a consolidated cash flow statement for Year 2 in accordance with the requirements of IAS 7.

  • CreatedJune 08, 2015
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