Statement of Financial Position as at 31 December 2017 Non-Current Assets Freehold Property Plant and Machinery...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Statement of Financial Position as at 31 December 2017 Non-Current Assets Freehold Property Plant and Machinery Investment Current Assets Inventory Trade Receivables Cash Total Assets Equity and Liabilities Equity Share Capital-RMI Shares Retained Earnings Non-Current Liabilities 12% loan stock Current Liabilities Trade Payables Bank Overdraft Total Equity and Liabilities Prominent RM ('000) 1950 795 1500 4245 575 330 50 955 5200 2000 1460 3460 500 680 560 1240 5200 Sorry RM ('000) 1250 375 1625 300 290 120 710 2335 1000 885 1885 100 350 350 2335 Additional Information: 1. Prominent Co acquired 600,000 ordinary shares in Sorry Co. on 1 January 2013 for RM1,000,000 when the retained profit of Sorry Co. was RM200,000. 2. At the date of acquisition of Sorry Co, the fair value of its freehold property was considered to be RM400, 000 greater than its value in Sorry Co's Statement of Financial Position. Sorry Co. had acquired the property in January 2013 and 50% of the value building had depreciated on cost over 50 years. 3. Non-Controlling interest was valued at full fair value. Sorry Co. shares were trading at RM1.60 prior to the acquisition by Prominent Co. Required: Prepare a Consolidated Statement of Financial Position as at 31 December 2017. (Show the working) Statement of Financial Position as at 31 December 2017 Non-Current Assets Freehold Property Plant and Machinery Investment Current Assets Inventory Trade Receivables Cash Total Assets Equity and Liabilities Equity Share Capital-RMI Shares Retained Earnings Non-Current Liabilities 12% loan stock Current Liabilities Trade Payables Bank Overdraft Total Equity and Liabilities Prominent RM ('000) 1950 795 1500 4245 575 330 50 955 5200 2000 1460 3460 500 680 560 1240 5200 Sorry RM ('000) 1250 375 1625 300 290 120 710 2335 1000 885 1885 100 350 350 2335 Additional Information: 1. Prominent Co acquired 600,000 ordinary shares in Sorry Co. on 1 January 2013 for RM1,000,000 when the retained profit of Sorry Co. was RM200,000. 2. At the date of acquisition of Sorry Co, the fair value of its freehold property was considered to be RM400, 000 greater than its value in Sorry Co's Statement of Financial Position. Sorry Co. had acquired the property in January 2013 and 50% of the value building had depreciated on cost over 50 years. 3. Non-Controlling interest was valued at full fair value. Sorry Co. shares were trading at RM1.60 prior to the acquisition by Prominent Co. Required: Prepare a Consolidated Statement of Financial Position as at 31 December 2017. (Show the working)
Expert Answer:
Answer rating: 100% (QA)
Step 1 Find the acquirer Prominent Co is the acquirer in the given question Since Prominent Co acquired Majority of stake in Sorry ie 6060000010000000 ... View the full answer
Related Book For
Financial Accounting and Reporting
ISBN: 978-0273744443
14th Edition
Authors: Barry Elliott, Jamie Elliott
Posted Date:
Students also viewed these accounting questions
-
The statement of financial position as at 31 December 20X2 of Zoom Products Ltd included: Trade receivables...............................85,360 The financial statements for the year ended 31...
-
Comparative statements of financial position as at 31 December 2017 and 2016 and the income statement for 2017 for W. Yu are set out below. W. YU Comparative Statements of Financial Position as at 31...
-
Consolidated Statement of Financial Position as at 31 December 2020 Assets Non-current assets Property, plant and equipment Investments property Right-of-use leased assets Intangible assets...
-
Consider the points P(1, 2, k) and Q(2,-1, 1) and let u be the equivalent vector to the directed line segment PO. If us = 2, what is the value of k? A-1 OB. 1 OC2 D. 3 O EO
-
Joel Blocker recorded the following transactions during the month of April. Post these entries to the Cash account of the general ledger to determine the ending balance in cash. The beginning balance...
-
In a survey on productivity apps, respondents write in the number of apps they have installed in the past six months. What measures of central tendency can be used? Which is the most appropriate and...
-
A force of magnitude \(F\) is exerted on the leftmost face of two blocks sitting next to each other on a slippery surface, with two of their faces touching. The inertia of the block on the right is...
-
Two examples of massively mismanaged projects are TAURUS and the Big Dig. The first, formally called the London Stock Exchange Automation Project, cost $575 million before ft was finally abandoned....
-
7. Draw the Gantt chart and calculate average waiting time for the following processes using round robin scheduling with time quantum-4. [The information of the processes are given in the image. Draw...
-
Effective financial statement analysis requires an understanding of a firms economic characteristics. The relations between various financial statement items provide evidence of many of these...
-
A parent company adopts an HRM strategy that would allow overseas subsidiaries to perform their HRM functions autonomously. Critically evaluate strategies that support this approach and explain the...
-
"In what ways do media and social media contribute to the reinforcement of social control in everyday life? Please provide two specific examples to illustrate this phenomenon."
-
Let f(x) = 14x5 - 6x3 + 9. Find f'(x). f'(x) = 0
-
What constitutes deviant behavior, and how does society typically react or respond to it?"
-
Clearly define the topic of maritime security in the Caribbean and provide background information on the importance of the region for global trade and security. Identify and describe the main...
-
Business deals don't always work out. Please share a story of a merger or acquisition that had a good or bad outcome in biotech? Whether it was a success or failure, please explain why it turned out...
-
Gone Pro is considering whether or not to produce three new cameras and, if so, how many of each. Each product needs to go through three production stages: machining, assembly, and testing. The table...
-
Conglomerate plc was a family company which was so successful that the founding Alexander family could not fully finance its expansion. So the company was floated on the stock exchange with the...
-
The financial statements of Rolls-Royce plc (aero engine manufacturer) for the year ended 31 December 1999 disclose the following matters in relation to the directors: (a) Remuneration committee The...
-
(a) The following ratios have been extracted from an analysis of the consolidated accounts of three companies North, South and East: Required: Comment on the respective performance of each of the...
-
Shampoo Sales. The file ShampooSales.csv contains data on the monthly sales of a certain shampoo over a three-year period. [Source: Hyndman and Yang (2018). a. Create a well-formatted time plot of...
-
Souvenir Sales. The file SouvenirSales.csv contains monthly sales for a souvenir shop at a beach resort town in Queensland, Australia, between 1995 and 2001. [Source: Hyndman and Yang (2018).] Back...
-
Analysis of Canadian Manufacturing Workers Workhours. The time plot in Figure 18 . 22 describes the average annual number of weekly hours spent by Canadian manufacturing workers...
Study smarter with the SolutionInn App