Chonglee Co acquired 80% of the ordinary share SINO Conon 1 April 20x5. On 31 December...

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Chonglee Co acquired 80% of the ordinary share SINO Conon 1 April 20x5. On 31 December 20x4 SINO Co's accounts showed a share premium account of K 4 000 and retained earnings of K 15 000. The statement of financial position of the two companies at 31 December n20x5 are set out below. Statement of financial position as at 31 December 20x5 Chonglee Co & SINO Co K K Assets Non-current assets Property, plant and equipment 32 000 16 000 ordinary shares of 50c each in SINO Co Current assets 50 000 82 000 85 000 30 000 43 000 Total assets Equity and liabilities Equity Ordinary shares of K1 each Ordinary shares of 50c each Share premium account Retained earnings Current liabilities Total equity and liabilities 167 000 73 000 Additional information (i) Neither company has paid any dividends during the year. Non-controlling interest should be valued at full fair value. (ii) The market price of the subsidiary's shares was K2.50 prior to acquisition the parent. Required Prepare the consolidated statement of financial position of Choinglee Co as at 31 December 20x 5. (25 marks). 167 000 100 000 10 00 7 000 40 000 147 000 20 000 73 000 4 000 39 000 53 000 20 000 Chonglee Co acquired 80% of the ordinary share SINO Conon 1 April 20x5. On 31 December 20x4 SINO Co's accounts showed a share premium account of K 4 000 and retained earnings of K 15 000. The statement of financial position of the two companies at 31 December n20x5 are set out below. Statement of financial position as at 31 December 20x5 Chonglee Co & SINO Co K K Assets Non-current assets Property, plant and equipment 32 000 16 000 ordinary shares of 50c each in SINO Co Current assets 50 000 82 000 85 000 30 000 43 000 Total assets Equity and liabilities Equity Ordinary shares of K1 each Ordinary shares of 50c each Share premium account Retained earnings Current liabilities Total equity and liabilities 167 000 73 000 Additional information (i) Neither company has paid any dividends during the year. Non-controlling interest should be valued at full fair value. (ii) The market price of the subsidiary's shares was K2.50 prior to acquisition the parent. Required Prepare the consolidated statement of financial position of Choinglee Co as at 31 December 20x 5. (25 marks). 167 000 100 000 10 00 7 000 40 000 147 000 20 000 73 000 4 000 39 000 53 000 20 000

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Consolidated statement of financial position of Choinglee Co As of 31 December 20x5 Assets Nonc... View the full answer