Ashanti : Complex (pg 122)

$ m $ m

Revenue

As per question (810 + 235 + 71) 1,116.00

Inter company sales elimination (W3) (15.00)

Revenue from illiquid customer (W5) (5.00) 1,096.00

Cost of sales (686 + 137 + 42) (865.00)

Depreciation (W1) (2.00)

Inter company purchase elimination (W3) 15.00

Unrealised profit (W3) (1.00) (853.00)

Gross profit 243.00

Other income

As per question (31 + 17 + 6) 54.00

Gain on sale of Ceram (W2) 6.80

Accrual of bond interest (W4) 1.67 62.47

Distribution costs (30 + 21 + 13) (64.00)

Administrative expenses

As per question (55+29+6) (90.00)

Impairment of goodwill (W2) (2.20)

Impairment of bond (W4) (13.98)

Loss on revaluation of PPE (W6) (1.60)

Holiday pay accrual (W7) (0.21)

Impairment of trade receivable (W5) (3.00) (110.99)

Finance costs (8 + 6 + 4) (18.00)

Share of profits of associate (W2) 2.10

Profit before tax 114.58

Income tax expense (21 + 23 + 5) (49.00)

Profit for the year 65.58

Other comprehensive income for the year, net of tax:

Fair value gain - Available-for-sale financial assets (20+9+3-3 w2 + 0.6 w4) 29.60

Share of associate available-for-sale financial assets (W2) 0.90

Gains on property revaluation (12+6 + 1.6 w6) 19.60

Actuarial losses on defined benefit plan (14.00)

Other comprehensive income for the year, net of tax 36.10

Total comprehensive income and expense for year 101.68

Consolidated statement of profit or loss and other comprehensive income for the year ended 30

Apr 2010

15

Profit/loss attributable to: $m Total comprehensive income attributable to: $m

Owners of the parent 51.70 Owners of the parent 81.98

Non-controlling interest Non-controlling interest

Bochem (36 x 30%) 10.8 From profit 13.88

Ceram (7 x 44%) 3.08 13.88 Bochem (15 x 30%) 4.5065.58 Ceram (3 x 44%) 1.32 19.70

101.68

Trailer : Complex (pg 123)

Workings ($m)

Group structure

Trailer Effective ownership

Park Caller

T - D 60% 14%

Park 14% - InD - 42%

NCI 40% 44%

Caller

1) Investment in Park

Goodwill

Consideration transferred 1,250.00

Non controlling interests (40% x 1,950) 780.00

Fair value of net assets (1,950.00)80.00

Fair value adjustements

Fair value of net assets 1,950.00

Book value

Share capital (1,210.00)

Retained earnings (650.00)

OCE (55.00)Land 35.00

Note : the income attributable to NCI might be complex and time consuming, you may choose not to

perform this part. In this question, calculating the income attributable to NCI worth 3 marks.

60%

70%

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2) Investment in Caller

Goodwill

Consideration transferred

By Trailer 280.00

By Park 1,270.00

NCI (44% x 1,150) 506.00

(-) Direct NCI (40% x 1,270) (508.00)

Fair value of net assets (1,150.00)398.00

Fair value adjustment

Fair value of net assets 1,150.00

Book value

Share cap (800.00)

RE (240.00)

OCE (70.00)Land 40.00

Dr RE (T) 310 - 280 30.00

Cr Inv in Caller 30.00

3) Impairment

Carrying amount of net assets (Park)

At year end 2,220.00

Fair value adjustment 35.00

Goodwill (80 / 60%) 133.33

2,388.33

Recoverable amount 2,088.00

Impairment loss 300.33

Only recognise (300.33 - 53.33 NCI) 247.00

Attributable only to Trailer (80.00)Share by Trailer and NCI 167.00

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4) Loan given

Present value of loan given (1 June 2012)

Year Cashflow DF at 6% Present value

1 1.50 0.9434 1.42

2 1.50 0.8900 1.33

3 51.50 0.8396 43.2446.00

Start Interest Interest End

Income received

46.00 2.80 (1.50) 47.30

Reported 48.50 Cr bank 50

Adjustement 1.20 Dr FA 46

Dr Donation 4

Dr RE (T) 1.20

Cr Financial asset 1.20

5) Office

1 June 2011Cost 90.00

Depreciation (30 years) (3.00)

Before revaluation 87.00

Loss (bal fig) (12.00)

31 May 2012Revalued amount 75.00

Depreciation (29 years) (2.60)

Before revaluation 72.40

Gain (bal fig) 32.6031 May 2013Revalued amount 105.00

Dr PPE 32.60

Cr RE (T) (12 - (3 - 2.6)) 11.60

Cr OCE (T) 21.00

6) Provision

First plan provision can be recognised as there are detailed plan and

those affected are informed. The direct cost of $14m is recognised, not the

retraining cost of $4m.

Second plan cannot be provided due no no announcement.

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7) Pension plan

Plan asset Plan liability

Bal b/f 28.00 Bal b/f 30.00

Interest 5% 1.40 Interest unwinding 5% 1.50

Contribution 2.00 Current service costs 1.00

Benefit paid (3.00) Benefit paid (3.00)

Retun on plan asset 0.60 Actuarial loss 5.50Bal c/f 29.00 Bal c/f 35.00

OCI -0.6+5.5

PL -1.4+1.5+1

Dr OCE (T) 4.90

Dr RE (T) 1.10

Cr Net pension plan

NCL 6.00

8) Group retained earnings as at year end

Trailer 1,240.00

(-) Caller investment (W2) (30.00)

(-) goodwill impairment (W3) (80.00)

(-) loan remeasurement (W4) (1.20)

(+) Revaluation gain (W5) 11.60

(-) provision (W6) (14.00)

(-) pension (W7) (1.10)

Park post (930 - 650 - 167 (W3)) x 60% 67.80

Caller post (350 - 240) x 56% 61.601,254.70

9) Group OCE as at year end

Trailer 125.00

(+) revaluation gain (W5) 21.00

(-) pension (W7) (4.90)

Park post (80 - 55) x 60% 15.00

Caller post (95 - 70) x 56% 14.00170.10

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10) Non controlling interest as at year end

Park

At acquisition (W1) 780.00

Share of Park post

RE (930 - 650 - 167 (W3)) x 40% 45.20

OCE (80 - 55) x 40% 10.00

Caller

At acquisition (W2) 506.00

(-) direct NCI (W2) (508.00)

Share of Caller post

RE (350 - 240) x 44% 48.40

OCE (95 - 70) x 44% 11.00892.60

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Answer

Trailer plc

Consolidated Statement of Financial Position at 31 May 2013

Assets: $m

Non-current assets:

Property, plant and equipment 3,780.6

(1,440 + 1,100 + 1,300 + 35 w1 + 40 w2 - 167 w3 + 32.6)

Goodwill (W2) 398.0

Financial assets (320 + 21 + 141 -1.2 w4) 480.8

4,659.4

Current assets (895 + 681 + 150) 1,726

Total assets 6,385.4

Equity and liabilities

Equity attributable to owners of parent

Share capital 1,750.0

Retained earnings (W8) 1,254.7

Other components of equity (W9) 170.1

3,174.8

Non-controlling interest (W10) 892.6

Total equity 4,067.4

Non-current liabilities (985 + 765 + 150 + 6 w7) 1,906.0

Current liabilities (115 + 87 + 196 + 14 w6) 412.0

Total equity and liabilities 6,385.4

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