Requirement (b) Consolidated statement of financial position as at 31 December 2010 for the ABC Group $000 ASSETS Non-current assets Property, plant and equipment (24,000 + 8,000 + 1,500 (Working 1)) Goodwill (Working 2) Intangible asset (Working 1)
33,500 416 180 34,096
Current assets Inventories (4,400 + 1,600 - 60 (Working 3) Receivables (6,800 + 1,800) Cash and cash equivalents (1,600 + 600) Total assets
5,940 8,600 2,200 16,740 50,836
EQUITY AND LIABILITIES Equity Share capital ($1 equity shares) Retained earnings (Working 4) Total equity attributable to parent Non-controlling interest (Working 5) Total equity
20,000 15,786 35,786 3,482 39,268
Non-current liabilities Long term borrowings Current liabilities (4,000 + 2,000 + 168)) Total liabilities Total equity and liabilities
5,400 6,168 11,568 50,836
Working 1 - Fair value adjustments
Property, plant and equipment Inventories Intangible assets Liabilities
At acquisition date $000 1,600 400 300 (420) 1,880
Movement
$000
$000 7,600 3,200 10,800
$000 (100) (400) (120) 252 (368)
31 December 2010 $000 1,500 180 (168) 1,512
Working 2 - Goodwill Consideration transferred NCI at fair value Net assets at fair value Share capital Retained earnings Fair value adjustments
2,000 6,400 1,880 (10,280) 520 (104) 416
Goodwill on acquisition 20% impairment Goodwill at 31 December 2010
Examiner's Answers CPGA
6
November 2011