Wolf Plc purchased 80% of Fox Ltd for 130,000 on 1 January 2017 when the retained...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Wolf Plc purchased 80% of Fox Ltd for £130,000 on 1 January 2017 when the retained reserves of Fox Ltd were 550,000 "hens". During 2019 there was an impairment loss of 64,000 'hens" relating to Fox Ltd's goodwill. It was the first time the impairment loss was revealed. The currency translation difference in the consolidated financial statements at 31 December 2018 relating to the translation of the subsidiary's financial statements (excluding goodwill) was £42,000. Retained earnings of Fox Ltd in separate financial statements in the post-acquisition period to 31 December 2018 amounted to £34,000. The dividends declared in 2019 were fully paid on 31 December 2019. The non-controlling interest is valued at its proportionate share of the fair value of the subsidiary's net assets. The consolidated retained earnings of Wolf Plc group at 31 December 2018 amounted to £210,000. Exchange rates were as follows: Exchange rates were as follows: "hens" to £1 1 January 2017 31 December 2018 12,0 10,0 31 December 2019 8,0 Average 2019 Required Prepare the consolidated statement of financial position, consolidated statement of profit or loss and other comprehensive income and consoliated statement of changes in equity of the Wolf Plc group for the year ended 31 December 2019. 9,0 Statement of financial position at 31 Decmeber 2019 Wolf Plc Fox Ltd £'000 "hens" '000 Property, plant and equipment 320 1 100 Investment in Fox Ltd 130 Current assets 100 500 Total assets 550 1 600 Share capital 120 250 Retained earnings 280 1 100 Loans 50 50 Current liabilities 100 200 Total liabilities and equity 550 1 600 Extract from statement of changes in equity for the year ended 31 December 2019 Retained Retained Earnings Earnings Fox Ltd Wolf Plc £'000 "hens" '000 Balance at 1 January 2019 209 850 Dividends paid 49 100 Total comprehensive income for the year 120 350 Balance at 31 December 2019 280 1 100 Statement of profit or loss and other comprehensive income for the year anded 31 December 2019 Wolf Plc Fox Ltd £'000 "hens" '000 Revenue 280 1 300 Cost of sales 100 570 Gross profit 180 730 Other expenses 20 220 Dividend from Fox Ltd 10 Profit before tax 170 510 Income tax expense 50 160 Net profit 120 350 CTD Total comprehensive income for the year 120 350 Wolf Plc purchased 80% of Fox Ltd for £130,000 on 1 January 2017 when the retained reserves of Fox Ltd were 550,000 "hens". During 2019 there was an impairment loss of 64,000 'hens" relating to Fox Ltd's goodwill. It was the first time the impairment loss was revealed. The currency translation difference in the consolidated financial statements at 31 December 2018 relating to the translation of the subsidiary's financial statements (excluding goodwill) was £42,000. Retained earnings of Fox Ltd in separate financial statements in the post-acquisition period to 31 December 2018 amounted to £34,000. The dividends declared in 2019 were fully paid on 31 December 2019. The non-controlling interest is valued at its proportionate share of the fair value of the subsidiary's net assets. The consolidated retained earnings of Wolf Plc group at 31 December 2018 amounted to £210,000. Exchange rates were as follows: Exchange rates were as follows: "hens" to £1 1 January 2017 31 December 2018 12,0 10,0 31 December 2019 8,0 Average 2019 Required Prepare the consolidated statement of financial position, consolidated statement of profit or loss and other comprehensive income and consoliated statement of changes in equity of the Wolf Plc group for the year ended 31 December 2019. 9,0 Statement of financial position at 31 Decmeber 2019 Wolf Plc Fox Ltd £'000 "hens" '000 Property, plant and equipment 320 1 100 Investment in Fox Ltd 130 Current assets 100 500 Total assets 550 1 600 Share capital 120 250 Retained earnings 280 1 100 Loans 50 50 Current liabilities 100 200 Total liabilities and equity 550 1 600 Extract from statement of changes in equity for the year ended 31 December 2019 Retained Retained Earnings Earnings Fox Ltd Wolf Plc £'000 "hens" '000 Balance at 1 January 2019 209 850 Dividends paid 49 100 Total comprehensive income for the year 120 350 Balance at 31 December 2019 280 1 100 Statement of profit or loss and other comprehensive income for the year anded 31 December 2019 Wolf Plc Fox Ltd £'000 "hens" '000 Revenue 280 1 300 Cost of sales 100 570 Gross profit 180 730 Other expenses 20 220 Dividend from Fox Ltd 10 Profit before tax 170 510 Income tax expense 50 160 Net profit 120 350 CTD Total comprehensive income for the year 120 350
Expert Answer:
Answer rating: 100% (QA)
Answer Statement of Consolidated Profit and Loss for the year ended 31 December 2019 Income Expenses Wolf Plc Euro Fox Ltd Hens Fox Ltd Euro fx rate a... View the full answer
Related Book For
Financial Accounting and Reporting
ISBN: 978-0273744443
14th Edition
Authors: Barry Elliott, Jamie Elliott
Posted Date:
Students also viewed these accounting questions
-
In preparing its consolidated financial statements at December 31, 20X7, the following elimination entries were included in the consolidation worksheet of Master Corporation: Master owns 60 percent...
-
On 1 January 2017 Kuntan Ltd entered into an operating lease contract for premises in the Windhoek Weinhill Mall. The lease is to run for a period of 4 years (contract expires on 31 December 2020)....
-
The Trial Balance of Wisdom Sdn Bhd at 31 December 2018 is as follows: Additional information: i. Inventory as at 31 December 2018 were valued at RM3,500. ii. Accrued expenses and revenues during the...
-
Example Problem for Declining Balance Depreciation Methods Historical cost of equipment A: $120,000, purchased on January 1, 2014. Estimated salvage value: $20,000; Estimated useful life: 5 years....
-
Onsite Insurance Company takes 10 days to make payments on insurance claims. Claims are processed through three departments: Data Input, Claims Audit, and Claims Adjustment. The three departments are...
-
On March 1, 2018, Eve and Frank each contributed $30,000 cash to the newly formed EF Partnership in exchange for a 50 percent general interest. The partnership immediately borrowed $50,000 from an...
-
10. (a) Observe that Ixy - abl = Ixy - xb + xb - abl and Ixl < lal + E.
-
Presented below and on the next page is the balance sheet of Rasheed Brothers Corporation (000s omitted). InstructionsEvaluate the balance sheet presented. State briefly the proper treatment of any...
-
Excercises A-H Chapter 12 Exercises Exercise A Income statement data for Boston Company for 2015 and 2016 follow: 2015 2016 Net sales $2,610,000 $1,936,000 Cost of goods sold 1,829,600 1,256,400...
-
The Blacks moved from Maine to Nevada. As a result, they sold their house in Maine on January 4, 2018. They originally paid $76,000 for the home on July 3, 1993, but managed to sell it for $604,000....
-
areas/about) Create an HTML document called assignment2.html that has the following features (80% of mark): has a title (e.g. "Websites about Protected Areas Issues") in H3 and a related image to...
-
1; Assume you are in charge of fundraising for an organization on your campusa social fraternity or sorority, a business fraternity, or any other such organization. It is your job to identify a...
-
how could a government or world leader have used ERM to respond to one of the financial, operational, or governance aspects of the covid19 pandemic? include references for further reading.
-
Computing and Interpreting Return on investment Selected operating data for two divisions of Outlook Brewing, Ltd., of Australia are given below: Division Queensland New South Wales Sales: $4,000,000...
-
Consider a parcel of land that contains an even ages stand of trees currently of age in A in t=0. you have to decide how much longer to allow this stand to grow given that when you cut the stand, you...
-
What does the company report for the following accounts for the most current fiscal year:Enter your answer in thousands.a . Cash$fill in the blank 1 1 , 1 5 4 , 8 6 7 b . Short - term investments (...
-
Use the following accounts with normal balances to prepare Bosco Company's classified balance sheet as of December 31
-
Pappa's Appliances uses the periodic inventory system. Details regarding the inventory of appliances at January 1, purchases invoices during the year, and the inventory count at December 31 are...
-
Easy View Ltd had started business publishing training resource material in ring binder format for use in primary schools. Later it diversified into the hiring out of videos and had opened a chain of...
-
How is the relationship between the audit firm and the audit client different for: (a) The provision of statutory audit when the auditor reports to the shareholders; (b) The provision of consultancy...
-
(a) The following ratios have been extracted from an analysis of the consolidated accounts of three companies North, South and East: Required: Comment on the respective performance of each of the...
-
What are advantages and disadvantages of short-term versus long-term debt as identified in this section? AppendixL01
-
What are the benefits of holding cash? (12 marks)
-
Combining all the information, which company do you think is the best investment? Explain. A skill any financial manager must have is to be able to find and understand financial information. Choose...
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App