31 December 20X7, P Ltd has three wholly-owned subsidiaries, E Ltd, F Ltd, and G Ltd.

Share Capital of P Ltd is 400,000 ordinary shares.
Share Capital of E Ltd is 100,000 ordinary shares.
Share Capital of F Ltd is 100,000 ordinary shares
Share Capital of G Ltd is 100,000 ordinary shares

P Ltd acquired its 100% interest in E Ltd for cash consideration of $100,000 in January 20X1 and E Ltd share capital is $100,000.

P Ltd acquired its 100% interest in F Ltd for cash consideration of $230,000 in February 20X2 when F Ltd's net assets at fair value were represented by share capital of $100,000 and retained profit of $130,000.

P Ltd acquired its 100% interest in G Ltd for cash consideration of $250,000 in March 20X5 when G Ltd's net assets at fair value were represented by share capital of $100,000 and retained profit of $100,000.

There has been no goodwill impairment.

On 1 January 20X8, P Ltd sold 

(i) all its shareholding in E Ltd for cash consideration of $450,000,

 (ii) 90,000 of F Ltd's shares for cash consideration of $400,000, and

 (iii) 40,000 of G Ltd' shares for cash consideration of $120,000.

The fair value of the remaining 10,000 shares in F Ltd (accounted as FVOCI investments is $35,000 and $38,000 on 1 January and 31 December 20x8 respectively).

Statement of financial position as at 31 December 20X8

P Ltd E Ltd F Ltd G Ltd
$'000 $'000 $'000 $'000
Investment in AFS, at fair value 10,000 shares in F Ltd 38 - - -
Investment in subsidiary, at cost 60,000 shares in G Ltd 150 - - -
Other assets 1,010 800 700 600
  1,198 800 700 600
Share capital 400 100 100 100
Fair value reserve 15 - - -
Retained profits 550 420 280 190
Liabilities 233 280 320 310
1,198 800 700 600

Do the consolidated financial position and statement of profit or loss with CJE for 20x8.

Answer rating: 100% (QA)

Statement of financial position Statement of profit and losss for 31 D... View the full answer