The following are the draft statement of the Financial Position of Green Co and its subsidiary Blue Co as of 31st December 2020 are given below:

	Green Co	Blue Co
Assets	‘RO’	‘RO’
Non –current assets
Property, Plant and Machinery	856,500	115,000
Investments: Blue Co	225000
Current assets
Inventories	330,900	113,400
Trade and other receivables	435,600	211,050
Cash and cash equivalents	90,000	113,175
Total Assets	1,938,000	552,625
Equity and liabilities
Share capital: Ordinary RO1 shares	1,000,000	225000
Share premium	125,000	28,125
Retained earnings	168,000	70,000
Non- current liabilities:
Bank Loan	127,500	90,000
Current liabilities
Trade and other payables	517,500	139,500
Total Equity & Liabilities	1,938,000	552,625

Additional information:

1. Green Co acquired 157,500 shares (70%) in Blue Co on 1^st Jan 2020 for a cost of RO 225,000 when the retained earnings of Blue Co were RO 15,000. The fair value of the non-controlling interest in Blue Co at the date of acquisition was RO 60,000.
2. At the date of acquisition, the fair value of the net assets of Blue Co approximated their carrying amounts, except for a plot of land owned by Blue Co. This land was held in the financial statements of Blue Co at its cost of RO 25,000 but was estimated to have a fair value of RO35,000. This land is still owned by Blue Co on 31st December 2020.
3. On 31^st December 2020 Green Co sold goods to Blue Co for RO 12,000 at a margin of 20%. 25% of these goods were still unsold by Blue Co at the end of the year.
4. On 31^st December 2020, Green Co’s trade receivables include RO 7,500 due from Blue Co, and Blue Co’s trade payable include RO 7,500 due to Green Co.

Question 1

A. You are required to:

Prepare consolidated statement of financial position as of 31^st December 2020 of Green Co.

(Provide Reference to IFRS wherever applicable and relevant workings)

Answer rating: 100% (QA)

Consolidated Statment of Financial Position Particulars Assets NonCurrent A... View the full answer