Question Tag: Consolidated Financial Position

Search 500 + past questions and counting.

  • Filter by Professional Bodies

  • Filter by Subject

  • Filter by Series

  • Filter by Topics

  • Filter by Levels

  • 30 Marks

FR – May 2015 – L2 – SA – Q1 – Consolidated Financial Statements

Prepare consolidated financial statements for Unitarisation Plc and compute Gain on Bargain Purchase.

Unitarisation Plc is a successful Nigerian Company that recently amended its objects clause to promote national unity and encourage anti-terrorism compliance. The company acquired 60% of the equity share capital of Famous Plc to further this mission. Summarised draft financial statements of the two companies are as follows:

Statement of Profit or Loss and Other Comprehensive Income for the year ended 31 October 2014

Unitarisation Plc (N’m) Famous Plc (N’m)
Revenue 51,000 25,200
Cost of Sales (37,800) (19,200)
Gross Profit 13,200 6,000
Distribution Costs (1,200) (1,200)
Administrative Expenses (3,600) (1,920)
Finance Costs (180) (240)
Profit before Tax 8,220 2,640
Income Tax Expense (2,820) (840)
Profit for the Year 5,400 1,800

Statement of Financial Position as at 31 October 2014

Unitarisation Plc (N’m) Famous Plc (N’m)
Non-current assets:
Property, Plant & Equipment 24,360 7,560
Current Assets 9,600 3,960
Total Assets 33,960 11,520
Equity & Liabilities:
Equity Shares of N1 each 6,000 2,400
Retained Earnings 21,240 3,900
Total Equity 27,240 6,300
Non-current Liabilities:
12% Loan Notes 1,800 2,400
Current Liabilities 4,920 2,820
Total Equity & Liabilities 33,960 11,520

Additional Information:

  1. Shares of Famous Plc were acquired on 1 May 2014, and the issue of shares was not recorded by Unitarisation Plc.
  2. There is cash in transit of N120,000,000 due from Unitarisation Plc to Famous Plc.
  3. Non-controlling interests are valued at full fair value; at acquisition, the fair value of non-controlling interests in Famous Plc was N3,540,000,000.
  4. Famous Plc’s assets’ fair value equaled carrying amounts at acquisition except for one equipment valued N1,200,000,000 above its carrying amount with a 5-year remaining life, using straight-line depreciation.
  5. The acquisition of 60% of Famous Plc’s shares was settled via a share exchange of two shares in Unitarisation Plc for three shares in Famous Plc, valued at N6 per share.
  6. Post-acquisition, Unitarisation Plc bought goods from Famous Plc for N4,800,000,000 with a 40% markup; N3,120,000,000 of these goods were unsold by year-end.
  7. Famous Plc’s trade receivables included N360,000,000 from Unitarisation Plc, with a discrepancy in Unitarisation’s payable ledger.
  8. Profits or losses are assumed to accrue evenly.

Required:

  1. Prepare Unitarisation Plc Consolidated Profit or Loss and Other Comprehensive Income for the year ended 31 October 2014. (10 Marks)
  2. Prepare Unitarisation Plc Consolidated Statement of Financial Position as at 31 October 2014. (10 Marks)
  3. Prepare the Consolidated Statement of Changes in Equity for the year ended 31 October 2014. (6 Marks)
  4. Explain “Gain on Bargain Purchase” according to IFRS 3 on Business Combinations. (4 Marks)

Login or create a free account to see answers

Login
Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "FR – May 2015 – L2 – SA – Q1 – Consolidated Financial Statements"

  • 15 Marks

FR – Nov 2022 – L2 – Q3a – Consolidated Statement of Financial Position

Preparation of the consolidated statement of financial position for Food Plc and its subsidiary Eba Ltd as of September 30, 2020.

a. Food Plc has a subsidiary, Eba Limited. The statements of financial position of the companies as at September 30, 2020 are presented below:


Additional Information:
(i) Food PLC acquired four hundred and eighty million shares in Eba Limited two years ago when the balances in retained earnings and general
reserves were N60,000,000 and N48,000,000 respectively.
(ii) The fair value of non-controlling interests in Eba limited as at the acquisition date was N158,000,000.
(iii) During the year, goods costing N80,000,000 to Food PLC were transferred to Eba Limited. It is the policy of Food PLC to transfer goods at cost plus 25%. A quarter of these goods have been sold by Eba Limited at year end.
(iv) Part of the bills receivable have been discounted by Food PLC.
(v) The sum of N8,000,000 transferred by Eba Limited to Food PLC as part payment for indebtedness was received after the reporting date.
(vi) An impairment test revealed a loss of N16,000,000 on the goodwill arising on the acquisition of Eba Limited.
(vii) The carrying amount of the net assets of Eba Limited is N20,000,000 more than the fair value at acquisition date. This was due to the loss in value of the company’s machinery occasioned by change in technology. The machinery is depreciated at a flat rate of 15% on cost.
(viii) The nominal value of the ordinary shares of Food PLC are denominated in 50 kobo per share, while those of Eba Limited are 25 kobo each.

Required:
a. Prepare the consolidated statement of financial position of Food group as at September 30, 2020. (15 Marks)

Login or create a free account to see answers

Login
Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "FR – Nov 2022 – L2 – Q3a – Consolidated Statement of Financial Position"

  • 20 Marks

CR – Dec 2022 – L3 – Q1 – Consolidated Financial Statements

Prepare the consolidated financial statement for Blackstars Ltd, accounting for business combinations and pensions.

Blackstars Ltd is a very successful SME business operating in a very good commercial location in Accra. The following statements of financial position are as at 30 June 2022:

Blackstars Ltd Meteors Ltd Satellite Ltd
Assets:
Tangible non-current assets GH¢1,024m GH¢352m GH¢224m
Investment in Meteors Ltd GH¢320m – –
Investment in Satellite Ltd GH¢48m – –
Current assets GH¢435m GH¢152m GH¢104m
Total assets GH¢1,827m GH¢504m GH¢328m
Equity and liabilities:
Share capital GH¢760m GH¢208m GH¢184m
Revaluation reserve GH¢72m – –
Retained earnings GH¢312m GH¢168m GH¢75.2m
Total equity GH¢1,144m GH¢376m GH¢259.2m
Non-current liabilities GH¢512m GH¢24m GH¢12.8m
Current liabilities GH¢171m GH¢104m GH¢56m
Total equity and liabilities GH¢1,827m GH¢504m GH¢328m

Additional information:

  1. On 1 July 2019, Blackstars Ltd acquired 10% holding of Meteors Ltd when the fair value of the net assets was GH¢260 million at a purchase consideration of GH¢24 million. On 1 July 2021, Blackstars Ltd further acquired 70% holding in Meteors Ltd when the fair value of the net assets was GH¢368 million at a purchase consideration of GH¢296 million.
  2. The estimated fair value of the initial 10% investment in the shares of Meteors Ltd was GH¢32 million at 30 June 2021.
  3. Blackstars Ltd wishes to use the full fair value method of accounting for the acquisition of Meteors Ltd. At 1 July 2021, the estimated value of the non-controlling interests was GH¢76 million.
  4. The difference between the carrying amount of Meteors Ltd’s net assets and their fair value at the date of acquisition was due to land valued at cost, which on 1 July 2021 had a fair value of GH¢20 million in excess of its carrying value. There has been no subsequent significant change in that value.
  5. On 1 July 2021, Blackstars Ltd acquired 25% holdings in Satellite Ltd when the fair value of the net assets was GH¢160 million for a purchase consideration of GH¢48 million.
  6. On 1 July 2021, the fair value of Satellite Ltd’s land was GH¢12.8 million in excess of its carrying value. There has been no subsequent significant change in that value.
  7. Goodwill arising on acquisition is tested for impairment at each year end. The recoverable amount of goodwill in Meteors Ltd at 30 June 2022 was GH¢24 million. There has been no impairment of the investment in Satellite Ltd.
  8. During the year, the Directors of Blackstars Ltd decided to form a defined benefit pension scheme for its employees. The company contributed cash amounting to GH¢200 million to the scheme but the only accounting entry for this has been to include it in receivables at 30 June 2022. At 30 June 2022, the following details relate to the pension scheme:
GH¢’million
Present value of obligation 253.6
Fair value of plan assets 241.6

Required:
Prepare the consolidated statement of financial position of the Blackstars Ltd group as at 30 June 2022.
(Total: 20 marks)

Login or create a free account to see answers

Login
Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "CR – Dec 2022 – L3 – Q1 – Consolidated Financial Statements"

  • 30 Marks

FR – May 2015 – L2 – SA – Q1 – Consolidated Financial Statements

Prepare consolidated financial statements for Unitarisation Plc and compute Gain on Bargain Purchase.

Unitarisation Plc is a successful Nigerian Company that recently amended its objects clause to promote national unity and encourage anti-terrorism compliance. The company acquired 60% of the equity share capital of Famous Plc to further this mission. Summarised draft financial statements of the two companies are as follows:

Statement of Profit or Loss and Other Comprehensive Income for the year ended 31 October 2014

Unitarisation Plc (N’m) Famous Plc (N’m)
Revenue 51,000 25,200
Cost of Sales (37,800) (19,200)
Gross Profit 13,200 6,000
Distribution Costs (1,200) (1,200)
Administrative Expenses (3,600) (1,920)
Finance Costs (180) (240)
Profit before Tax 8,220 2,640
Income Tax Expense (2,820) (840)
Profit for the Year 5,400 1,800

Statement of Financial Position as at 31 October 2014

Unitarisation Plc (N’m) Famous Plc (N’m)
Non-current assets:
Property, Plant & Equipment 24,360 7,560
Current Assets 9,600 3,960
Total Assets 33,960 11,520
Equity & Liabilities:
Equity Shares of N1 each 6,000 2,400
Retained Earnings 21,240 3,900
Total Equity 27,240 6,300
Non-current Liabilities:
12% Loan Notes 1,800 2,400
Current Liabilities 4,920 2,820
Total Equity & Liabilities 33,960 11,520

Additional Information:

  1. Shares of Famous Plc were acquired on 1 May 2014, and the issue of shares was not recorded by Unitarisation Plc.
  2. There is cash in transit of N120,000,000 due from Unitarisation Plc to Famous Plc.
  3. Non-controlling interests are valued at full fair value; at acquisition, the fair value of non-controlling interests in Famous Plc was N3,540,000,000.
  4. Famous Plc’s assets’ fair value equaled carrying amounts at acquisition except for one equipment valued N1,200,000,000 above its carrying amount with a 5-year remaining life, using straight-line depreciation.
  5. The acquisition of 60% of Famous Plc’s shares was settled via a share exchange of two shares in Unitarisation Plc for three shares in Famous Plc, valued at N6 per share.
  6. Post-acquisition, Unitarisation Plc bought goods from Famous Plc for N4,800,000,000 with a 40% markup; N3,120,000,000 of these goods were unsold by year-end.
  7. Famous Plc’s trade receivables included N360,000,000 from Unitarisation Plc, with a discrepancy in Unitarisation’s payable ledger.
  8. Profits or losses are assumed to accrue evenly.

Required:

  1. Prepare Unitarisation Plc Consolidated Profit or Loss and Other Comprehensive Income for the year ended 31 October 2014. (10 Marks)
  2. Prepare Unitarisation Plc Consolidated Statement of Financial Position as at 31 October 2014. (10 Marks)
  3. Prepare the Consolidated Statement of Changes in Equity for the year ended 31 October 2014. (6 Marks)
  4. Explain “Gain on Bargain Purchase” according to IFRS 3 on Business Combinations. (4 Marks)

Login or create a free account to see answers

Login
Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "FR – May 2015 – L2 – SA – Q1 – Consolidated Financial Statements"

  • 15 Marks

FR – Nov 2022 – L2 – Q3a – Consolidated Statement of Financial Position

Preparation of the consolidated statement of financial position for Food Plc and its subsidiary Eba Ltd as of September 30, 2020.

a. Food Plc has a subsidiary, Eba Limited. The statements of financial position of the companies as at September 30, 2020 are presented below:


Additional Information:
(i) Food PLC acquired four hundred and eighty million shares in Eba Limited two years ago when the balances in retained earnings and general
reserves were N60,000,000 and N48,000,000 respectively.
(ii) The fair value of non-controlling interests in Eba limited as at the acquisition date was N158,000,000.
(iii) During the year, goods costing N80,000,000 to Food PLC were transferred to Eba Limited. It is the policy of Food PLC to transfer goods at cost plus 25%. A quarter of these goods have been sold by Eba Limited at year end.
(iv) Part of the bills receivable have been discounted by Food PLC.
(v) The sum of N8,000,000 transferred by Eba Limited to Food PLC as part payment for indebtedness was received after the reporting date.
(vi) An impairment test revealed a loss of N16,000,000 on the goodwill arising on the acquisition of Eba Limited.
(vii) The carrying amount of the net assets of Eba Limited is N20,000,000 more than the fair value at acquisition date. This was due to the loss in value of the company’s machinery occasioned by change in technology. The machinery is depreciated at a flat rate of 15% on cost.
(viii) The nominal value of the ordinary shares of Food PLC are denominated in 50 kobo per share, while those of Eba Limited are 25 kobo each.

Required:
a. Prepare the consolidated statement of financial position of Food group as at September 30, 2020. (15 Marks)

Login or create a free account to see answers

Login
Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "FR – Nov 2022 – L2 – Q3a – Consolidated Statement of Financial Position"

  • 20 Marks

CR – Dec 2022 – L3 – Q1 – Consolidated Financial Statements

Prepare the consolidated financial statement for Blackstars Ltd, accounting for business combinations and pensions.

Blackstars Ltd is a very successful SME business operating in a very good commercial location in Accra. The following statements of financial position are as at 30 June 2022:

Blackstars Ltd Meteors Ltd Satellite Ltd
Assets:
Tangible non-current assets GH¢1,024m GH¢352m GH¢224m
Investment in Meteors Ltd GH¢320m – –
Investment in Satellite Ltd GH¢48m – –
Current assets GH¢435m GH¢152m GH¢104m
Total assets GH¢1,827m GH¢504m GH¢328m
Equity and liabilities:
Share capital GH¢760m GH¢208m GH¢184m
Revaluation reserve GH¢72m – –
Retained earnings GH¢312m GH¢168m GH¢75.2m
Total equity GH¢1,144m GH¢376m GH¢259.2m
Non-current liabilities GH¢512m GH¢24m GH¢12.8m
Current liabilities GH¢171m GH¢104m GH¢56m
Total equity and liabilities GH¢1,827m GH¢504m GH¢328m

Additional information:

  1. On 1 July 2019, Blackstars Ltd acquired 10% holding of Meteors Ltd when the fair value of the net assets was GH¢260 million at a purchase consideration of GH¢24 million. On 1 July 2021, Blackstars Ltd further acquired 70% holding in Meteors Ltd when the fair value of the net assets was GH¢368 million at a purchase consideration of GH¢296 million.
  2. The estimated fair value of the initial 10% investment in the shares of Meteors Ltd was GH¢32 million at 30 June 2021.
  3. Blackstars Ltd wishes to use the full fair value method of accounting for the acquisition of Meteors Ltd. At 1 July 2021, the estimated value of the non-controlling interests was GH¢76 million.
  4. The difference between the carrying amount of Meteors Ltd’s net assets and their fair value at the date of acquisition was due to land valued at cost, which on 1 July 2021 had a fair value of GH¢20 million in excess of its carrying value. There has been no subsequent significant change in that value.
  5. On 1 July 2021, Blackstars Ltd acquired 25% holdings in Satellite Ltd when the fair value of the net assets was GH¢160 million for a purchase consideration of GH¢48 million.
  6. On 1 July 2021, the fair value of Satellite Ltd’s land was GH¢12.8 million in excess of its carrying value. There has been no subsequent significant change in that value.
  7. Goodwill arising on acquisition is tested for impairment at each year end. The recoverable amount of goodwill in Meteors Ltd at 30 June 2022 was GH¢24 million. There has been no impairment of the investment in Satellite Ltd.
  8. During the year, the Directors of Blackstars Ltd decided to form a defined benefit pension scheme for its employees. The company contributed cash amounting to GH¢200 million to the scheme but the only accounting entry for this has been to include it in receivables at 30 June 2022. At 30 June 2022, the following details relate to the pension scheme:
GH¢’million
Present value of obligation 253.6
Fair value of plan assets 241.6

Required:
Prepare the consolidated statement of financial position of the Blackstars Ltd group as at 30 June 2022.
(Total: 20 marks)

Login or create a free account to see answers

Login
Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "CR – Dec 2022 – L3 – Q1 – Consolidated Financial Statements"

Elevate your professional expertise across key business domains with our comprehensive training programs

Our offerings

Contact Info

  • +233203701923
    +233543919232
  • info@nbcinstitute.com

Customer

Get In Touch

Follow us on our social media and get daily updates.

Facebook-f Twitter Linkedin-in Envelope
error: Content is protected !!
Oops!

This feature is only available in selected plans.

Click here to view all plans

Click on the login button below to login if you’re already subscribed to a plan or click on the upgrade button below to upgrade your current plan.

Login
Upgrade Plan

If you’re not subscribed to a plan, click on the button below to choose a plan

Subscribe to a plan