Upload
charles-mk-chan
View
220
Download
0
Embed Size (px)
Citation preview
7/29/2019 AL Consolidated Accounts Suggested Solution
http://slidepdf.com/reader/full/al-consolidated-accounts-suggested-solution 1/5
Ti
C
D
T
p
is
itle of the popyright oate of makihis materia
ermitted to important
Cons
ublications
ner: ng this copl has been make any to underst
lidate
Sugge
: y: opied undurther copnd and res
Acco
sted S
HKEAA Hong KoMay 201
r a licence y of this wpect copyri
unts
lutio
rinciples ong Examin1 issued by trk, or to mght.
Fa
L2011
Accounts tion Asseshe HKEAA. ake it avail
ebook: Aaro
ast papers ment AuthYou are noble to oth
lee.edu@gm
ority
rs. It
ail.com
7/29/2019 AL Consolidated Accounts Suggested Solution
http://slidepdf.com/reader/full/al-consolidated-accounts-suggested-solution 2/5
Facebook: [email protected]
AL2011IQ2 – Suggested Solution
VERSION 1 - Based on ORIGINAL HKAS: If pre-acquisition dividend income must be deducted from the cost
of investment at company level i.e. in holding’s company account (in addition to the consolidated Accounts.)
(a) (1)
Cost of control
$ $
Sunny Ltd Windy Ltd (80% pre-acq equity)
Investment in Windy Ltd 1 218 000 Ordinary shares 800 000
Share premium 64 000
Retained profit (269 000 - 20 000) x 80% 199 200
Revaluation reserve (W1) 46 720
Goodwill (on consolidation) 108 080
1 218 000 1 218 000
W1: (350000-400000*90%^3)*80%
Goodwill
$ $
Cosf of Control 108 080 Income statement: impairment loss 30 000
Balance c/d 78 080
108 080 108 080
$
Investment in Windy Ltd 1 218 000
Add: Dividend Recevied 16 000
Cash paid 1 234 000
(2)
Sunny Ltd
Statement of comprehensive income
for the year ended 31 December 2010
$
Turnover (1994000-840000+180000) 1 334 000
Cost of sales (897000-425000+180000-15000) (637 000)
Gross Profit 697 000
Other income (180000-60000) 120 000
Selling and Administration (165000-72000) (93 000)
Administrative expenses (375840-110000-5840-30000) (230 000)
Profit before tax 494 000
Taxation (81000-35000) (46 000)
Profit after tax 448 000
7/29/2019 AL Consolidated Accounts Suggested Solution
http://slidepdf.com/reader/full/al-consolidated-accounts-suggested-solution 3/5
Facebook: [email protected]
Sunny Ltd
Statement of financial position
as at 31 December 2010
Non-current assets $
Property, plant and equipment, net (3293560-1421000-58400+5840) 1 820 000
Investment in Windy Ltd (w) 1 218 000
3 038 000
Current Assets
Inventories (216500-110000+15000) 121 500
Trade receivables (178500-123000+24000) 79 500
Cash at bank (303000-101000-6000) 196 000
397 000
TOTAL ASSETS 3 435 000
Current Liabilities
Trade payables (342000-170000+18000) 190 000
Tax payable (77000-30000) 47 000
237 000
Equity
Ordinary shares of $2 each 2 100 000
Share Premium 300 000
Retained Profit (w) 798 000
3 198 000
TOTAL LIABILITIES AND EQUITY 3 435 000
Retained Profit
$ $
Balance c/d 929 128 Sunny Ltd (balancing figure) 798 000
Impairment loss on goodwill 30 000 Windy Ltd (80% post-acq retained profit) 180 800Depreciation-undercharged 4 672 (475000-(269000-20000))
Unrealised profit on inventories 15 000 978 800 978 800
7/29/2019 AL Consolidated Accounts Suggested Solution
http://slidepdf.com/reader/full/al-consolidated-accounts-suggested-solution 4/5
Facebook: [email protected]
VERSION 2- Based on LATEST HKAS: If pre-acquisition dividend income may not be deducted from the cost
of investment at company level i.e. in holding’s company account (but must be elminated in the the
consolidated Accounts.)
(a)
(1)
Cost of control
$ $
Sunny Ltd Windy Ltd (80% pre-acq equity)
Investment in Windy Ltd 1 234 000 Ordinary shares 800 000
Share premium 64 000
Retained profit 269 000 x 80% 215 200
Revaluation reserve (W1) 46 720
Goodwill (on consolidation) 108 080
1 234 000 1 234 000
W1: (350000-400000*90%^3)*80%
Goodwill
$ $
Cosf of Control 108 080 Income statement: impairment loss 30 000
Balance c/d 78 080
108 080 108 080
(2)
Sunny Ltd
Statement of comprehensive income
for the year ended 31 December 2010
$
Turnover (1994000-840000+180000) 1 334 000
Cost of sales (897000-425000+180000-15000) (637 000)
Gross Profit 697 000
Other income (180000-60000) 120 000
Selling and Administration (165000-72000) (93 000)
Administrative expenses (375840-110000-5840-30000) (230 000)
Profit before tax 494 000
Taxation (81000-35000) (46 000)
Profit after tax 448 000
7/29/2019 AL Consolidated Accounts Suggested Solution
http://slidepdf.com/reader/full/al-consolidated-accounts-suggested-solution 5/5
Non-c
Prope
Invest
Curre
Invent
Trade
Cash
TOT
Curre
Trade
Tax p
Equit
Ordin
Share
Retain
TOT
Balan
ImpaiDepre
Unrea
Divid
urrent asset
ty, plant and
ment in Wind
nt Assets
ories (21650
receivables (
t bank (3030
L ASSETS
nt Liabilitie
payables (34
yable (7700
ry shares of
Premium
ed Profit (w)
L LIABILI
e c/d
ment loss oniation-under
lised profit on
nd income re
Stat
a
equipment, n
y Ltd (w)
-110000+15
178500-1230
0-101000-6
000-170000
-30000)
2 each
IES AND E
goodwillharged
inventories
ceived
Sunny
ment of fina
s at 31 Dece
t (3293560-1
00)
0+24000)
00)
18000)
QUITY
td
cial position
ber 2010
421000-5840
$
92
3
1
1
99
0+5840)
etained Pro
,128 Sunny
,000 Windy,672 (47500
,000 ,000 ,800
$
1 820 00
1 234 00
3 054 00
121 50
79 50
196 00
397 00
3 451 00
190 00
47 00
237 00
2 100 00
300 00
814 00
3 214 00
3 451 00
it
td (balancin
Ltd (80% pos-(269000-20
Fa
figure)
t-acq retained00))
ebook: Aaro
profit)
lee.edu@gm
1
ail.com
$
14,000
80,800
94,800