The Pong has purchased 60% of Song on October 1, 2016. The retained earnings of Song were
Question:
The Pong has purchased 60% of Song on October 1, 2016. The retained earnings of Song were $41,000 on this date. The consolidated statements of financial position of Pong and Song were as follows at September 30, 2020
Pong, $000 | Song, $000 | |
Non-current assets | 500 | 106 |
Investments | 175 | 20 |
Current assets | 148.9 | 40.1 |
Total assets | 823.9 | 166.1 |
Share capital $1 ordinary shares | 107 | 36 |
Share premium | 163 | - |
Retained earnings | 327.5 | 88.6 |
Non-current liabilities | 131 | 13 |
Current liabilities | 95.4 | 28.5 |
Equity and liabilities | 823.9 | 166.1 |
Additional notes:
1. Along with Song, Pong invested in several other companies and shares’ carrying amount is $100,000
2. Since acquisition the Song has not issued any shares.
3. The non-controlling interest of Pong is measured on the basis of full goodwill method.
4. There is no impairment of goodwill;
5. At September 30, 2016 the one Song’s share market value was $2.5.
REQUIRED
Prepare a consolidated statement of financial position for the Pong Group at September 30, 2020
College Accounting Chapters 1-30
ISBN: 978-1259631115
15th edition
Authors: John Price, M. David Haddock, Michael Farina