The statements of financial position of AB, its subsidiary CD and its associate EF are below:...

  

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The statements of financial position of AB, its subsidiary CD and its associate EF are below: EF Statements of financial position as AB R000 CD R000 R000 at 31 March 2013 ASSETS Non-current assets 12,000 8,000 20,000 Property, plant and equipment Investments (held at 11.000 = cost) Current assets Total assets 12,000 16.000 6.000 8,000 4.000 47,000 18,000 12.000 EQUITY AND LIABILITIES Share capital (R1 10,000 shares) 1,000 1,000 25.000 13.000 9.000 35,000 Retained earnings Total equity Total liabilities Total equity and liabilities 14,000 10,000 12.000 4.000 2.000 47,000 18,000 12,000 Additional information: 1. AB acquired 80% of the 1 million R1 equity shares of CD in 2008 for R8,500,000 when CD's retained earnings were R9,100,000. The non-controlling interest in CD was measured at its fair value of R2,200,000 at the date of acquisition. The fair value of CD's net assets was the same as the book value at the date of acquisition. There has been no impairment of goodwill. 2. AB acquired 40% of the 1 million R1 equity shares of EF in 2010 for R2,500,000 when EF's retained earnings were R5,000,000. This shareholding gave AB the ability to exercise significant influence over EF. Required: (a) Prepare the consolidated statement of financial position for the AB Group as at 31 March 2013. (7 marks) AB disposed of 200,000 of its shares in CD on 1 April 2013 for R3,100,000. (b) Calculate the adjustment to parent's equity that will be debited/credited (state which) to AB's group retained earnings at 31 March 2014 in respect of this disposal. (3 marks) 31,000 The statements of financial position of AB, its subsidiary CD and its associate EF are below: EF Statements of financial position as AB R000 CD R000 R000 at 31 March 2013 ASSETS Non-current assets 12,000 8,000 20,000 Property, plant and equipment Investments (held at 11.000 = cost) Current assets Total assets 12,000 16.000 6.000 8,000 4.000 47,000 18,000 12.000 EQUITY AND LIABILITIES Share capital (R1 10,000 shares) 1,000 1,000 25.000 13.000 9.000 35,000 Retained earnings Total equity Total liabilities Total equity and liabilities 14,000 10,000 12.000 4.000 2.000 47,000 18,000 12,000 Additional information: 1. AB acquired 80% of the 1 million R1 equity shares of CD in 2008 for R8,500,000 when CD's retained earnings were R9,100,000. The non-controlling interest in CD was measured at its fair value of R2,200,000 at the date of acquisition. The fair value of CD's net assets was the same as the book value at the date of acquisition. There has been no impairment of goodwill. 2. AB acquired 40% of the 1 million R1 equity shares of EF in 2010 for R2,500,000 when EF's retained earnings were R5,000,000. This shareholding gave AB the ability to exercise significant influence over EF. Required: (a) Prepare the consolidated statement of financial position for the AB Group as at 31 March 2013. (7 marks) AB disposed of 200,000 of its shares in CD on 1 April 2013 for R3,100,000. (b) Calculate the adjustment to parent's equity that will be debited/credited (state which) to AB's group retained earnings at 31 March 2014 in respect of this disposal. (3 marks) 31,000

Answer rating: 100% (QA)

a Prepare Consolidated statent y financial Parita A AB Grupas 3132013 A... View the full answer