The statement of financial position of ABC Co and XYZ Co as at December 31, 2019...
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The statement of financial position of ABC Co and XYZ Co as at December 31, 2019 were as follows: АВС $'000 XYZ #000 Property Plant & Equipment Investment in Wakanda Co Other Assets 9,000 5,000 5,000 2,000 1,500 6,500 16,000 Share Capital Retained Earnings Other Liabilities 500 500 14,500 1,000 16.000 5,000 1,000 6,500 ABC Co acquired 80% equity in XYZ Co two years ago. At the date of acquisition, XYZ's retained earnings stood at $3miliion and the fair value of its net assets was $5million. This was $1.5million above the carrying amount of the net assets at this date. The fair value adjustment related to an asset that had a remaining useful economic life of 10 years as at the date of acquisition. The goodwill arising on consolidation has not suffered any impairment. Required: Prepare the consolidated statement of financial position of ABC Co. Group as at December 31, 2019, on the assumption that non-controlling interest is valued at fair value (use the full goodwill method). Please show all workings. The statement of financial position of ABC Co and XYZ Co as at December 31, 2019 were as follows: АВС $'000 XYZ #000 Property Plant & Equipment Investment in Wakanda Co Other Assets 9,000 5,000 5,000 2,000 1,500 6,500 16,000 Share Capital Retained Earnings Other Liabilities 500 500 14,500 1,000 16.000 5,000 1,000 6,500 ABC Co acquired 80% equity in XYZ Co two years ago. At the date of acquisition, XYZ's retained earnings stood at $3miliion and the fair value of its net assets was $5million. This was $1.5million above the carrying amount of the net assets at this date. The fair value adjustment related to an asset that had a remaining useful economic life of 10 years as at the date of acquisition. The goodwill arising on consolidation has not suffered any impairment. Required: Prepare the consolidated statement of financial position of ABC Co. Group as at December 31, 2019, on the assumption that non-controlling interest is valued at fair value (use the full goodwill method). Please show all workings.
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Working 1 Acquisition Level Estimate Amt 000 XYZ Net Asset Fair Value 5000 80 share of ABC 4000 Purc... View the full answer
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Financial Accounting and Reporting
ISBN: 978-0273744443
14th Edition
Authors: Barry Elliott, Jamie Elliott
Posted Date:
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