Sweden acquired 100% of the equity shares of Oslo on 1 March 20X1 and gained control. At that date the balances on the reserves of Oslo were as follows:

The Revaluation reserve – Kr10 million

Retained earnings – Kr70 million

The statements of financial position of the two companies at 31/12/20X1 were as follows:

Notes:
1 The fair values were the same as the book values on 1/3/20X1.
2 There have been no movements on share capital since 1/3/20X1.
3 20% of the goodwill is to be written off as an impairment loss.
4 Method 1 is to be used to compute the non-controlling interest.

Required:
Prepare a consolidated statement of financial position for Sweden as at 31 December20X1.

Transcribed Image Text:

Sweden Krm Oslo Krm ASSETS Non-current assets Property, plant and equipment Investment in Oslo Current assets Total assets 120 264 200 1 60 624 140 260 EQUITY AND LIABILITIES Krl0 shares Retained earnings Revaluation reserve 104 20 524 100 624 110 80 10 200 60 260 Current liabilities Total equity and liabilities