The following summarized statements of financial position are provided for Romeo Inc. and Juliet Inc. as...
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The following summarized statements of financial position are provided for Romeo Inc. and Juliet Inc. as at 31 December 20X9: Non-current assets Investment in Juliet Current Assets Romeo Inc. $000 3,500 2,500 1,250 7,250 Juliet Inc. $000 2,000 4,000 2,250 750 2,750 Equity: Share capital ($1) Retained earnings Current liabilities 1,000 500 7,250 2,750 Romeo purchased 80% of Juliet's equity shares 1 January 20X8 for $2.5m when Juliet's retained earnings were $800,000. 1,000 1,250 At this date, Juliet's non-current assets had a fair value of $200,000 in excess of their book value and the assets had a remaining useful economic life of 10 years. It is group policy to measure the NCI holding at their proportion of the subsidiary's net assets. As at 31 December 20X9, an impairment loss of $300,000 has arisen on goodwill. Required: Prepare the consolidated statement of financial position at 31 December 20X9. The following summarized statements of financial position are provided for Romeo Inc. and Juliet Inc. as at 31 December 20X9: Non-current assets Investment in Juliet Current Assets Romeo Inc. $000 3,500 2,500 1,250 7,250 Juliet Inc. $000 2,000 4,000 2,250 750 2,750 Equity: Share capital ($1) Retained earnings Current liabilities 1,000 500 7,250 2,750 Romeo purchased 80% of Juliet's equity shares 1 January 20X8 for $2.5m when Juliet's retained earnings were $800,000. 1,000 1,250 At this date, Juliet's non-current assets had a fair value of $200,000 in excess of their book value and the assets had a remaining useful economic life of 10 years. It is group policy to measure the NCI holding at their proportion of the subsidiary's net assets. As at 31 December 20X9, an impairment loss of $300,000 has arisen on goodwill. Required: Prepare the consolidated statement of financial position at 31 December 20X9.
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To prepare the consolidated statement of financial position at 31 December 20X9 we need to combine t... View the full answer
Related Book For
Financial Accounting and Reporting
ISBN: 978-0273744443
14th Edition
Authors: Barry Elliott, Jamie Elliott
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