The following information is also available: On 1 April 2020 Giant Energy Plc acquired share capital in
Question:
The following information is also available: | |||||
On 1 April 2020 Giant Energy Plc acquired share capital in Micro Solar Ltd. At that date, the retained earnings of Micro Solar Ltd amounted to £80m. Each ordinary share in Micro Solar Ltd carries one vote and there are no voting rights other than those attached to the ordinary shares. Micro Solar Ltd has not issued any shares since its acquisition by Giant Energy Plc. |
2. | On 1 April 2020, the fair value of Micro Solar Ltd’s property, plant, and equipment was £150m higher than the book value. This adjustment has not been reflected in the statement of financial position on the previous page. No further adjustments are necessary for depreciation during the year ended 31 March 2021 | ||||
3. | On 31 March 2021 Giant Energy Plc’s inventory includes £50m relating to goods purchased from Micro Solar Ltd. These goods had cost Micro Solar Ltd £35m. | ||||
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(i) | Calculate goodwill arising on the acquisition of Micro Solar Ltd on 1 April 2020. | ||||
(ii) | Calculate consolidated retained earnings on 31 March 2021. | ||||
(iii) | Calculate the non-controlling interest on 31 March 2021. | ||||
(iv) | Prepare a consolidated statement of financial position for Giant Energy Plc at 31 March 2021. |
Accounting Principles
ISBN: 978-0470534793
10th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso