Financial statements of Equuleus Ltd and its subsidiary Fornax Ltd at 31 Dec 2014: Equuleus Ltd Fornax
Question:
Financial statements of Equuleus Ltd and its subsidiary Fornax Ltd at 31 Dec 2014:
Equuleus Ltd | Fornax Ltd | ||||||||||||||||||
Profit before tax | $ 3200 | $ 1800 | |||||||||||||||||
Income tax expense | (1300) | (240) | |||||||||||||||||
Profit for the year Other comprehensive income: Gain/loss on FA fair value change Total comprehensive income Profit for the year | 1900 (500) 1400 | 1560 200 1360 | |||||||||||||||||
1900 | 1560 | ||||||||||||||||||
Retained earnings (1/1/2014) | 1500 | 2100 | |||||||||||||||||
3400 | 3660 | ||||||||||||||||||
Dividend | (500) | (0) | |||||||||||||||||
Retained earnings (31/12/2014) | 2900 | 3660 | |||||||||||||||||
Share capital | 25000 | 10000 | |||||||||||||||||
General reserve | 8000 | 3000 | |||||||||||||||||
FA fair value change reserve (1/1/2014) | 1500 | 300 | |||||||||||||||||
Change during the year (simultaneously as OCI) | (500) | 200 | |||||||||||||||||
FA fair value change reserve (31/12/2014) | 1000 | 500 | |||||||||||||||||
Liabilities (include DTL net of DTA) | 5000 | 1300 | |||||||||||||||||
Total equity and liabilities | $ 41900 | $ 18460 | |||||||||||||||||
Land | $ 8600 | $ 5100 | |||||||||||||||||
Plant | 17000 | 8000 | |||||||||||||||||
Accumulated depreciation | (5000) | (1000) | |||||||||||||||||
Financial assets | 3000 | 2000 | |||||||||||||||||
Inventory | 3000 | 4000 | |||||||||||||||||
Cash | 300 | 360 | |||||||||||||||||
Shares in Fornax Ltd | 15000 | - | |||||||||||||||||
Total Assets | $ 41900 | $ 18460 | |||||||||||||||||
Equuleus Ltd had acquired all the share capital of Fornax Ltd on 1 Jan 2013 for $15000 when the equity of Fornax Ltd consisted of:
At the acquisition date, Fornax’s assets and liabilities were recorded as fair value except for the following:
The plant had a further 5-year life. The inventory was sold by 31 Dec 2013. All valuation adjustments to non-current assets are made on consolidation. The land was sold in May 2014 for $6000. Tax rate is 30%. Required Prepare the consolidated financial statements for the year ended 31 Dec 2014. Include consolidation adjustment journal entries and a consolidation worksheet. |
Applied Regression Analysis and Other Multivariable Methods
ISBN: 978-1285051086
5th edition
Authors: David G. Kleinbaum, Lawrence L. Kupper, Azhar Nizam, Eli S. Rosenberg