Question 1 Given below are the Statement of Financial Positions of H and S as at...
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Question 1 Given below are the Statement of Financial Positions of H and S as at 31 Dec 20X7. Share capital Retained Earnings Investment in S at cost Non-current assets Inventory Liabilities H $'000 1000 300 1300 500 700 200 1400 -100 1300 a) H acquired 75% of the issued ordinary shares of S on 1 January 20X7 for $ 500,000. On that date the retained earnings of S stood at $ 100,000. The total number of shares of S on the date of acquisition was 400,000. b) H choose to only account for its own Goodwill in the consolidated financial statements, as per one of the options allowed under NZ IFRS 3. c) During the year H sold goods costing $40,000 for $50,000 to S. Half of thes goods remain unsold by S as at 31 December 20X7. Required: Prepare the consolidated Statement of Financial Positions of H group as at 31 December 20X7. S $'000 400 200 600 450 200 650 -50 600 Question 1 Given below are the Statement of Financial Positions of H and S as at 31 Dec 20X7. Share capital Retained Earnings Investment in S at cost Non-current assets Inventory Liabilities H $'000 1000 300 1300 500 700 200 1400 -100 1300 a) H acquired 75% of the issued ordinary shares of S on 1 January 20X7 for $ 500,000. On that date the retained earnings of S stood at $ 100,000. The total number of shares of S on the date of acquisition was 400,000. b) H choose to only account for its own Goodwill in the consolidated financial statements, as per one of the options allowed under NZ IFRS 3. c) During the year H sold goods costing $40,000 for $50,000 to S. Half of thes goods remain unsold by S as at 31 December 20X7. Required: Prepare the consolidated Statement of Financial Positions of H group as at 31 December 20X7. S $'000 400 200 600 450 200 650 -50 600
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Related Book For
International Financial Reporting and Analysis
ISBN: 978-1408075012
5th edition
Authors: David Alexander, Anne Britton, Ann Jorissen
Posted Date:
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