The following are the financial statements of the Pessy Ltd group for the year ending 31...

 

 

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The following are the financial statements of the Pessy Ltd group for the year ending 31 December 2014. ASSETS Property, plant and equipment Investment in Sessy Ltd at fair value Trade receivables Total assets EQUITY AND LIABILITIES Share capital (180 000/220 000 shares) Mark-to-market reserve Retained earnings: PESSY LTD NS 226 000 760 000 148 000 1134 000 180 000 40 000 684 000 230 000 SESSY LTD NS 1 134 000 1 125.000 175 000 1 300 000 Balance on I January 2014 Profit for the year Gain on sale of land and buildings Total equity and liabilities. Notes 1. Pessy Ltd paid N$720 000 for an 80% interest in Sessy Ltd on 1 January 2012 when the owner's equity of the latter comprised the following: Share capital $220 000 Retained earings $350 000 220 000 580 000 200 000 300 000 1 300 000 On the acquisition date, Pessy Ltd valued the land and buildings of Sessy Ltd, with a carrying amount of N$ 500 000 at N$ 700 000. This revaluation was not recorded in the books of Sessy Ltd. 2. Pessy Ltd classified the equity investment in Sessy Ltd under IFRS 9 in its separate financial statements and recognized fair value adjustments in a mark-to-market reserve. I 3. The fair value adjustment of NS 40 000 was made in the current year. 4. Pessy Ltd elected to measure the non-controlling interests in the acquire at their proportionate share of the acquiree's identifiable net assets at the acquisition date. 5. During 2014, Sessy Ltd sold the land and buildings referred to above for NS 800 000. REQUIRED Prepare the consolidated financial statements of the Pessy Ltd group for the year ending 31 December 2014. The consolidated statement of profit or loss and other comprehensive income should be included. O Show all your workings. Pro-forma journals are not required The following are the financial statements of the Pessy Ltd group for the year ending 31 December 2014. ASSETS Property, plant and equipment Investment in Sessy Ltd at fair value Trade receivables Total assets EQUITY AND LIABILITIES Share capital (180 000/220 000 shares) Mark-to-market reserve Retained earnings: PESSY LTD NS 226 000 760 000 148 000 1134 000 180 000 40 000 684 000 230 000 SESSY LTD NS 1 134 000 1 125.000 175 000 1 300 000 Balance on I January 2014 Profit for the year Gain on sale of land and buildings Total equity and liabilities. Notes 1. Pessy Ltd paid N$720 000 for an 80% interest in Sessy Ltd on 1 January 2012 when the owner's equity of the latter comprised the following: Share capital $220 000 Retained earings $350 000 220 000 580 000 200 000 300 000 1 300 000 On the acquisition date, Pessy Ltd valued the land and buildings of Sessy Ltd, with a carrying amount of N$ 500 000 at N$ 700 000. This revaluation was not recorded in the books of Sessy Ltd. 2. Pessy Ltd classified the equity investment in Sessy Ltd under IFRS 9 in its separate financial statements and recognized fair value adjustments in a mark-to-market reserve. I 3. The fair value adjustment of NS 40 000 was made in the current year. 4. Pessy Ltd elected to measure the non-controlling interests in the acquire at their proportionate share of the acquiree's identifiable net assets at the acquisition date. 5. During 2014, Sessy Ltd sold the land and buildings referred to above for NS 800 000. REQUIRED Prepare the consolidated financial statements of the Pessy Ltd group for the year ending 31 December 2014. The consolidated statement of profit or loss and other comprehensive income should be included. O Show all your workings. Pro-forma journals are not required

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Pessy Lid Group Consolidated statement of profit or loss and other comprehensive income F... View the full answer