Question 1 (17 Marks) On 2 January 2018, Khairul Ltd. acquired a 80 per cent interest...

 

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Question 1 (17 Marks) On 2 January 2018, Khairul Ltd. acquired a 80 per cent interest in Aminuddin Ltd at $500,000 cash consideration. At that date, the equity of Aminuddin's statement of financial position revealed the following: $000 400-80%-320 Issued capital Retained Earnings 100 500 • At the acquisition date, Aminuddin revalued its non-current, non-depreciable assets to fair value by $20,000. • On 31 December 2018, Aminuddin declared a final dividend of $10,000. Ignore tax effect. Required: Based on the information available: (a) Prepare the pro-forma entries for the parent entity. (b) Prepare the pro-forma entries for the subsidiary entity. (c) Prepare the pre-acquisition elimination entry including the revaluation at consolidation level. (7 marks) (d) Prepare the consolidated entries on 31 December 2018. (4 marks) (4 marks) (2 marks) Question 1 (17 Marks) On 2 January 2018, Khairul Ltd. acquired a 80 per cent interest in Aminuddin Ltd at $500,000 cash consideration. At that date, the equity of Aminuddin's statement of financial position revealed the following: $000 400-80%-320 Issued capital Retained Earnings 100 500 • At the acquisition date, Aminuddin revalued its non-current, non-depreciable assets to fair value by $20,000. • On 31 December 2018, Aminuddin declared a final dividend of $10,000. Ignore tax effect. Required: Based on the information available: (a) Prepare the pro-forma entries for the parent entity. (b) Prepare the pro-forma entries for the subsidiary entity. (c) Prepare the pre-acquisition elimination entry including the revaluation at consolidation level. (7 marks) (d) Prepare the consolidated entries on 31 December 2018. (4 marks) (4 marks) (2 marks)

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ProForma Entries Bist 202018 Proforma Investment in Aminuddin Led Good will balancing figure c... View the full answer