1.1) Below are the statements of financial position of three companies as at 31 May 20X9....

 

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1.1) Below are the statements of financial position of three companies as at 31 May 20X9. Cream Plc Cone Plc Ice Plc £'000 £'000 £'000 Non-current assets Property, plant & equipment Investments Current assets Inventories Trade receivables Cash & cash equivalents Total assets Equity and liabilities Equity shares of £1 each Share premium Retained earnings Non-current liabilities Loans Current liabilities Trade payables Taxation Bank Total equity and liabilities 3,125 3,825 6,950 1,600 1,250 1,700 4,550 11,500 4,050 250 3,250 7,550 1,250 1,250 1,350 100 1,250 2,700 11,500 3,900 3,900 1,500 1,200 1,100 3,800 7,700 2,500 100 500 3,100 1,600 1,600 600 50 2,350 3,000 7,700 1,100 1,100 1,650 1,500 2,200 5,350 6,450 2,500 900 3,400 1,600 1,600 1,400 50 1,450 6,450 ● ● ● You are also given the following information: Ice acquired 2,250,000 shares in Cream on 1 June 20X8 for £3,000,000 when Cream had retained earnings of £100,000. Ice acquired 750,000 shares in Cone on 1 June 20X8 for £825,000 when Cone had retained earnings of £150,000. On the date of acquisition, the plant in the books of Cream was determined to have a fair value of £300,000 in excess of its carrying value. The plant had a remaining life of 6 years at this time. During the year, Cream sold goods to Ice for £1,000,000 (sales value to Ice) at a margin of 30%. Ice had half of these goods still in inventory at the year-end. As a result of the sales between Ice and Cream, Ice showed a trade payable of £250,000 and Cream showed a trade receivable of £250,000. The Ice Group values the non-controlling interest using the proportion of net asset meth An impairment test at the year-end shows that goodwill for Cream has impaired by £30,000 and the investment in Cone has impaired by £5,000. Required: Prepare the consolidated statement of financial position for the year ended 31 May 20X9. Show all your workings on goodwill, group retained earnings, non-controlling interests, investment in associates and inter-company trading. (Answers should be rounded to the nearest thousand.) 1.1) Below are the statements of financial position of three companies as at 31 May 20X9. Cream Plc Cone Plc Ice Plc £'000 £'000 £'000 Non-current assets Property, plant & equipment Investments Current assets Inventories Trade receivables Cash & cash equivalents Total assets Equity and liabilities Equity shares of £1 each Share premium Retained earnings Non-current liabilities Loans Current liabilities Trade payables Taxation Bank Total equity and liabilities 3,125 3,825 6,950 1,600 1,250 1,700 4,550 11,500 4,050 250 3,250 7,550 1,250 1,250 1,350 100 1,250 2,700 11,500 3,900 3,900 1,500 1,200 1,100 3,800 7,700 2,500 100 500 3,100 1,600 1,600 600 50 2,350 3,000 7,700 1,100 1,100 1,650 1,500 2,200 5,350 6,450 2,500 900 3,400 1,600 1,600 1,400 50 1,450 6,450 ● ● ● You are also given the following information: Ice acquired 2,250,000 shares in Cream on 1 June 20X8 for £3,000,000 when Cream had retained earnings of £100,000. Ice acquired 750,000 shares in Cone on 1 June 20X8 for £825,000 when Cone had retained earnings of £150,000. On the date of acquisition, the plant in the books of Cream was determined to have a fair value of £300,000 in excess of its carrying value. The plant had a remaining life of 6 years at this time. During the year, Cream sold goods to Ice for £1,000,000 (sales value to Ice) at a margin of 30%. Ice had half of these goods still in inventory at the year-end. As a result of the sales between Ice and Cream, Ice showed a trade payable of £250,000 and Cream showed a trade receivable of £250,000. The Ice Group values the non-controlling interest using the proportion of net asset meth An impairment test at the year-end shows that goodwill for Cream has impaired by £30,000 and the investment in Cone has impaired by £5,000. Required: Prepare the consolidated statement of financial position for the year ended 31 May 20X9. Show all your workings on goodwill, group retained earnings, non-controlling interests, investment in associates and inter-company trading. (Answers should be rounded to the nearest thousand.) 1.1) Below are the statements of financial position of three companies as at 31 May 20X9. Cream Plc Cone Plc Ice Plc £'000 £'000 £'000 Non-current assets Property, plant & equipment Investments Current assets Inventories Trade receivables Cash & cash equivalents Total assets Equity and liabilities Equity shares of £1 each Share premium Retained earnings Non-current liabilities Loans Current liabilities Trade payables Taxation Bank Total equity and liabilities 3,125 3,825 6,950 1,600 1,250 1,700 4,550 11,500 4,050 250 3,250 7,550 1,250 1,250 1,350 100 1,250 2,700 11,500 3,900 3,900 1,500 1,200 1,100 3,800 7,700 2,500 100 500 3,100 1,600 1,600 600 50 2,350 3,000 7,700 1,100 1,100 1,650 1,500 2,200 5,350 6,450 2,500 900 3,400 1,600 1,600 1,400 50 1,450 6,450 ● ● ● You are also given the following information: Ice acquired 2,250,000 shares in Cream on 1 June 20X8 for £3,000,000 when Cream had retained earnings of £100,000. Ice acquired 750,000 shares in Cone on 1 June 20X8 for £825,000 when Cone had retained earnings of £150,000. On the date of acquisition, the plant in the books of Cream was determined to have a fair value of £300,000 in excess of its carrying value. The plant had a remaining life of 6 years at this time. During the year, Cream sold goods to Ice for £1,000,000 (sales value to Ice) at a margin of 30%. Ice had half of these goods still in inventory at the year-end. As a result of the sales between Ice and Cream, Ice showed a trade payable of £250,000 and Cream showed a trade receivable of £250,000. The Ice Group values the non-controlling interest using the proportion of net asset meth An impairment test at the year-end shows that goodwill for Cream has impaired by £30,000 and the investment in Cone has impaired by £5,000. Required: Prepare the consolidated statement of financial position for the year ended 31 May 20X9. Show all your workings on goodwill, group retained earnings, non-controlling interests, investment in associates and inter-company trading. (Answers should be rounded to the nearest thousand.) 1.1) Below are the statements of financial position of three companies as at 31 May 20X9. Cream Plc Cone Plc Ice Plc £'000 £'000 £'000 Non-current assets Property, plant & equipment Investments Current assets Inventories Trade receivables Cash & cash equivalents Total assets Equity and liabilities Equity shares of £1 each Share premium Retained earnings Non-current liabilities Loans Current liabilities Trade payables Taxation Bank Total equity and liabilities 3,125 3,825 6,950 1,600 1,250 1,700 4,550 11,500 4,050 250 3,250 7,550 1,250 1,250 1,350 100 1,250 2,700 11,500 3,900 3,900 1,500 1,200 1,100 3,800 7,700 2,500 100 500 3,100 1,600 1,600 600 50 2,350 3,000 7,700 1,100 1,100 1,650 1,500 2,200 5,350 6,450 2,500 900 3,400 1,600 1,600 1,400 50 1,450 6,450 ● ● ● You are also given the following information: Ice acquired 2,250,000 shares in Cream on 1 June 20X8 for £3,000,000 when Cream had retained earnings of £100,000. Ice acquired 750,000 shares in Cone on 1 June 20X8 for £825,000 when Cone had retained earnings of £150,000. On the date of acquisition, the plant in the books of Cream was determined to have a fair value of £300,000 in excess of its carrying value. The plant had a remaining life of 6 years at this time. During the year, Cream sold goods to Ice for £1,000,000 (sales value to Ice) at a margin of 30%. Ice had half of these goods still in inventory at the year-end. As a result of the sales between Ice and Cream, Ice showed a trade payable of £250,000 and Cream showed a trade receivable of £250,000. The Ice Group values the non-controlling interest using the proportion of net asset meth An impairment test at the year-end shows that goodwill for Cream has impaired by £30,000 and the investment in Cone has impaired by £5,000. Required: Prepare the consolidated statement of financial position for the year ended 31 May 20X9. Show all your workings on goodwill, group retained earnings, non-controlling interests, investment in associates and inter-company trading. (Answers should be rounded to the nearest thousand.)