(a) On 1st April 2017, A Limited acquired 80% of the share capital of S Limited....

  

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(a) On 1st April 2017, A Limited acquired 80% of the share capital of S Limited. On acquisition date the share capital and reserves of S Ltd. stood at 75,00,000 and 1,25,000 respectively. A Limited paid initial cash consideration of 10,00,000. Additionally, A Limited issued 2,00,000 equity shares with a nominal value of 1 per share at current market value of 1.80 per share. It was also agreed that A Limited would pay a further sum of 5,00,000 after three years. A Limited's cost of capital is 10%. The appropriate discount factor for 1 @ 10% receivable at the end of 1st year: 0.91 2nd year: 0.83 3rd year: 0.75 The shares and deferred consideration have not yet been recorded by A limited. Below are the Balance Sheet of A Limited and S Limited as at 31st March, 2019: Non-current assets: Property, plant & equipment Investment in S Limited at cost Current assets: Inventory Receivables Cash A Limited (000) S Limited (7000) 5,500 1,000 1,500 550 100 400 200 200 50 7,650 1,850 Equity: Share capital 2,000 500 Retained earnings 1,400 300 3,400 800 Non-current liabilities Current liabilities Further information: 3,000 400 1,250 650 7.650 1,850 (1) On the date of acquisition the fair values of S Limited's plant exceeded its book value by *2,00,000. The plant had a remaining useful life of five years at this date; (ii) The consolidated goodwill has been impaired by *2,58,000; and (iii) The A Limited Group, values the non-controlling interest using the fair value method. At the date of acquisition, the fair value of the 20% non-controlling interest was 3,80,000. You are required to prepare Consolidated Balance Sheet of A Limited as at 31st March, 2019. (Notes to Account on Consolidated Balance Sheet is not required). (a) On 1st April 2017, A Limited acquired 80% of the share capital of S Limited. On acquisition date the share capital and reserves of S Ltd. stood at 75,00,000 and 1,25,000 respectively. A Limited paid initial cash consideration of 10,00,000. Additionally, A Limited issued 2,00,000 equity shares with a nominal value of 1 per share at current market value of 1.80 per share. It was also agreed that A Limited would pay a further sum of 5,00,000 after three years. A Limited's cost of capital is 10%. The appropriate discount factor for 1 @ 10% receivable at the end of 1st year: 0.91 2nd year: 0.83 3rd year: 0.75 The shares and deferred consideration have not yet been recorded by A limited. Below are the Balance Sheet of A Limited and S Limited as at 31st March, 2019: Non-current assets: Property, plant & equipment Investment in S Limited at cost Current assets: Inventory Receivables Cash A Limited (000) S Limited (7000) 5,500 1,000 1,500 550 100 400 200 200 50 7,650 1,850 Equity: Share capital 2,000 500 Retained earnings 1,400 300 3,400 800 Non-current liabilities Current liabilities Further information: 3,000 400 1,250 650 7.650 1,850 (1) On the date of acquisition the fair values of S Limited's plant exceeded its book value by *2,00,000. The plant had a remaining useful life of five years at this date; (ii) The consolidated goodwill has been impaired by *2,58,000; and (iii) The A Limited Group, values the non-controlling interest using the fair value method. At the date of acquisition, the fair value of the 20% non-controlling interest was 3,80,000. You are required to prepare Consolidated Balance Sheet of A Limited as at 31st March, 2019. (Notes to Account on Consolidated Balance Sheet is not required).