4. 4. At the year-end Panda’s trade receivables included £1,400,000 owed from Alligator. This figure matched the trade payables figure for Panda in Alligator’s accounts.
   Snake’s trade receivables included £1,944,000 owed from Panda. The trade payables figure for Snake in Panda’s accounts was £1,082,000. A payment of £862,000 made by Panda on 31 December 2019 was not received in Snake’s bank account until after the year-end.

5. 5. 10% of the goodwill, and 20% of the initial investment in the associate, are to be written off as impaired in the year ended 31 December 2019.

Required:

Prepare a Consolidated Statement of Financial Position at 31st December 2019.
 

Transcribed Image Text:

The following are the financial statements of Panda Plc, Snake plc and Alligator plc, for the accounting year-end 31 December 2019. ASSETS Non-Current Assets Property, plant & equipment Investment in Snake Investment in Alligator Current Assets Inventory Trade receivables Cash at Bank TOTAL ASSETS EQUITY & LIABILITIES Equity £1 ordinary shares Share premium Retained earnings Current Liabilities Trade payables Tax payable TOTAL EQUITY & LIABILITIES Additional information: 1. 2. 3. Panda £000 68,944 74,400 20,014 32,020 43,768 11,145 250.291 108,066 12,967 54,266 175,299 60,534 14,458 250.291 Snake £000 50,704 27,751 32,679 3,484 114.618 29,177 9,726 61,433 100,336 11,041 3,241 114.618 Alligator £000 44,868 20,832 12,888 2,711 81.299 22,695 2,269 37,217 62,181 15,547 3,571 81.299 Panda acquired 75% of the ordinary shares in Snake on 1 January 2019 when the balance on Snake's retained earnings was £32.41 million. The consideration for the shares in Snake was £6.99 in cash for every 1 share acquired in Snake. This has been accounted for by Panda. At the date of acquisition, shares in Snake were trading at 823p (£8.23). The fair value of the land owned by Snake plc was £10.29 million above the book value at the date of acquisition. Panda uses the fair value method to calculate goodwill and the non-controlling interest. Panda also acquired 40% of the ordinary shares in Alligator on the same date, when the balance on Alligator's retained earnings was £32.41 million. During the year, Snake plc sold to Panda plc goods for £6.17 million, which represented cost plus a mark-up of one-third. A quarter of these goods were still in inventory at the end of the year. The following are the financial statements of Panda Plc, Snake plc and Alligator plc, for the accounting year-end 31 December 2019. ASSETS Non-Current Assets Property, plant & equipment Investment in Snake Investment in Alligator Current Assets Inventory Trade receivables Cash at Bank TOTAL ASSETS EQUITY & LIABILITIES Equity £1 ordinary shares Share premium Retained earnings Current Liabilities Trade payables Tax payable TOTAL EQUITY & LIABILITIES Additional information: 1. 2. 3. Panda £000 68,944 74,400 20,014 32,020 43,768 11,145 250.291 108,066 12,967 54,266 175,299 60,534 14,458 250.291 Snake £000 50,704 27,751 32,679 3,484 114.618 29,177 9,726 61,433 100,336 11,041 3,241 114.618 Alligator £000 44,868 20,832 12,888 2,711 81.299 22,695 2,269 37,217 62,181 15,547 3,571 81.299 Panda acquired 75% of the ordinary shares in Snake on 1 January 2019 when the balance on Snake's retained earnings was £32.41 million. The consideration for the shares in Snake was £6.99 in cash for every 1 share acquired in Snake. This has been accounted for by Panda. At the date of acquisition, shares in Snake were trading at 823p (£8.23). The fair value of the land owned by Snake plc was £10.29 million above the book value at the date of acquisition. Panda uses the fair value method to calculate goodwill and the non-controlling interest. Panda also acquired 40% of the ordinary shares in Alligator on the same date, when the balance on Alligator's retained earnings was £32.41 million. During the year, Snake plc sold to Panda plc goods for £6.17 million, which represented cost plus a mark-up of one-third. A quarter of these goods were still in inventory at the end of the year.

Answer rating: 100% (QA)

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2019 ASSETS NonCur... View the full answer