On 1 July 2019, Besar Ltd acquired all of the shares (cum div.) of Kecil Ltd. The statement of financial position provided by the two companies at 1 July 2019 is as follows:

	Besar Ltd	Kecil Ltd
Shares in Kecil Ltd	367,000	-
Plant	230,000	320,000
Accumulated depreciation	(120,000)	(40,000)
Land	-	12,000
Goodwill	10,200	2,000
Inventory	30,000	51,000
Receivables	40,000	42,000
	557,200	387,000
Share capital	280,000	200,000
General reserve	44,000	33,000
Retained earnings	131,200	134,000
Liabilities	102,000	20,000
	557,200	387,000

At the date of the business combination, all the identifiable assets and liabilities of Kecil Ltd had carrying amounts equal to their fair values except for:

	Fair value
Plant	$300,000
Inventory	31,000
Receivables	43,000

The plant had a further useful life of 5 years. It was sold by Kecil Ltd on 1 January 2021 for $3,000.

By 30 June 2020, all the inventory was sold to entities outside the group at a loss of $5,000. The receivables of $43,000 has been collected by 30 June 2021.

One of the liabilities of Kecil Ltd at 1 July 2019 was dividend payable of $10,000.

Besar Ltd uses the partial goodwill method.

The tax rate is 30%.

Additional information

For the year ended 30 June 2021, Kecil Ltd also reported a comprehensive income for the year of $800, which included gains on revaluation of land of $250 as the asset revaluation surplus in relation to the land.

Required

Prepare the consolidation worksheet entries for the preparation of the consolidated financial statements of Besar Ltd at 30 June 2021 in accordance to IFRS 10/AASB 10 Consolidated Financial Statements and IFRS 3/ AASB 3 Business Combinations. Workings and narrations are required.

Answer rating: 100% (QA)

Prepare the consolidated work shead entries of Besa... View the full answer