QUESTION 7

Hi Good day

Please help with the question below:

The summarised draft statements of financial position of three entities at 30 September 2004 are:

Holdings Sub1 Sub2

R000 R000 R000

Property, plant and equipment 1,000 700 225

Investments (at cost) In Pepper 350

In Salt 175 50

Current assets 370 300 75 1,895 1,050 300 Share capital R1 500 300 100

Retained earnings 1,145 550 150

Current liabilities 250 200 50 1,895 1,050 300

(1) On 1 October 2001, Holdings acquired 70% of the equity shares of Sub1 and 60% of the equity shares of Sub2. Sub1s retained earnings at this date were R100,000 and Sub2's retained earnings were R50,000. (2) On the same date, 1 October 2001, Sub1 acquired 20% of the equity shares of Sub2. (3) It is group policy to measure NCIs using the proportion of fair value of net assets method. Required: Prepare the consolidated statement of financial position of the Holdings Group at 30 September 2004. (25)