Asset plc and Liability Limited prepare their financial statements to 31 December each year. Extracts from their 2018 financial statements are shown below:
Statements of Financial Position as at 31 December 2018
Asset plc | Liability Limited | |
£’000 | £’000 | |
Assets | ||
Non-current assets | ||
Property, plant and equipment | 17,160 | 7,640 |
Investment in Liability Limited | _7,120 | – |
24,280 | 7,640 | |
Current assets | ||
Inventories | 2,800 | 1,220 |
Trade receivables | 1,960 | 1,400 |
Cash | __420 | 180 |
Total Assets | 29,460 | 10,440 |
Equity and Liabilities | ||
Share capital – £1 ordinary shares | 12,000 | 5,000 |
Share premium | 2,000 | 600 |
Retained earnings | 12,880 | 1,840 |
26,880 | 7,440 | |
Non-current Liabilities | ||
5% debentures | – | 2,000 |
Current Liabilities | ||
Trade payables | 2,580 | 1,000 |
Total Equity and Liabilities | 29,460 | 10,440 |
Additional Information:
1. Asset plc purchased 70% of Liability Limited on 1 January 2018 when the balance on Liability Limited’s retained earnings was £1,560,000.
2. Included in trade receivables of Asset plc are amounts owed by Liability Limited of £100,000. Liability Limited’s payables include £100,000 due toAsset plc.
3. At the date of acquisition, the fair value of Liability Limited’s property was £400,000 higher than the book value.
4. At the 31 December 2018, the inventory of Liability Limited includes goods it has purchased from Asset plc for £300,000. Asset plc sets its prices at cost plus 25%. One half of these goods are still in inventory at 31 December 2018.
5. Goodwill arising on the acquisition of Liability Limited has not been impaired.
6. It is the group policy to value non-controlling interest using the proportionate share of net assets method.
Requirement
Prepare the consolidated statement of financial position of Asset plc for the year ended 31 December 2018.
1.whatis the goodwill figure at the date of aquacition ?
2. ppe figure on 31december 2018?
3.what amount of unrealised profit in inventoryto be eliminated on 31 december 2018?
4.equity capital total om 31 december 2018?
5.post aquasition earningof liabilityon31/12/18?
6.non controlling interest at the date of aquisition ?
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more
Recent Comments