Sun limited purchased a 60% holding in Moon limited on 1 April 2019 for Shs. 6.1 million
Question:
Sun limited purchased a 60% holding in Moon limited on 1 April 2019 for Shs. 6.1 million when the retained earnings of Moon limited were Shs. 3.6 million and a 30% holding in Star limited on 1 October 2020 for Shs. 4.7 million when its retained earnings were Shs. 6.2 million.
The fair value of the non-controlling interest (NCI) was Shs. 3.9 million at the acquisition date. The fair value of the net assets in Moon limited was the same as their book values.
At 31 March 2021 the statement of financial statement of Sun limited, Moon limited and Star limited were as follows:
Impairment of goodwill was Shs. 800,000. Besides, investment in Star was assessed to be impaired by Shs. 360,000 at 31 March 2021.
Required:
Present the consolidated statement of financial position of Sun limited as at 31 March 2021
Intermediate Accounting
ISBN: 978-0132162302
1st edition
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella