FR&A Revision Group Q4 - Hot Answer PDF

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BMAN21020 Sem 1 Topic 4: Consolidated FS Page 1 of 3

Revision Q4: Hot: ANSWER All workings are in £000’s Goodwill in S: - Alternative method identifying goodwill for NCI Investment in S: Shares issued (at MV) Cash (ord shares) Consideration for FV of NCI at acquisition: FV of assets acquired: S/capital 4,000.00 P&L - on acqn 180.00 FV adjustment 430.00

2,870.00 700.00 3,570.00 1,450.00

(4,610.00) 410.00 Investment in Associate Cost of A: Add: post-acquisition profit: P&L at year-end P&L on Acquisition: Post-acq profit Investment in Ache Provision for Unrealised Profit Sales value 100% Cost 85% GP 15% Reduce H's profit by 13.5K Reduce group's stock by 13.5K PURP: 350 x 15/100

187.00 98 (75) 23

90.0 76.5 13.5

=

13.50

Consolidated P&L Reserves: C/Fwd 31-Mar-11 H: Dividends from S - ord PURP (H)

S:

A:

per B/S less pre-acquisition

[See Inv. in Associate wkg]

40%

1,187.00 21.00 (13.50)

705.00 (180.00) 525.00 70%

367.50 9.20 1,571.20

9.20 196.20

BMAN21020 Sem 1 Topic 4: Consolidated FS

Page 2 of 3

Consolidated P&L Reserves: B/Fwd 31-Mar-10 H: S: per P&L less pre-acq

A:

1,100.00 550.00 (180.00) 370.00 70%

per P&L less pre-acq

88.00 (75.00) 13.00 40%

Post ac profit:

NCI (Balance Sheet): Brought forward FV of NCI at acquisition: S’s P&L at opening date less pre-acq

NCI Dividends in S: Total for year: Proposed: Total: Group NCI NCI (Balance Sheet): Carried forward FV of NCI at acquisition: S’s P&L reserve at end of year: less pre-acquisition

Profit attributable to NCI Profit available to shareholders

259.00

5.20 1,364.20

1,450.00 550.00 (180.00) 370.00 30%

Ord

Pref 30 21 9

111.00 1,561.00

Tot: 0 0 0

30 21 9

1,450.00 705.00 (180.00) 525.00 30%

157.50 1,607.50

185.00

30%

55.50

BMAN21020 Sem 1 Topic 4: Consolidated FS

Page 3 of 3

£'000

Consolidated Balance sheet Fixed assets: Tangible Intangible Assets - Goodwill - S Investment in A Current Assets: - stock [Net of PURP)] - debtors - bank

£'000 8,715.00 410.00 196.20 9,321.20

826.50 87.00 31.00 944.50

Current Liabilities: - creditors - tax - dividends (H) - dividends (NCI)

205.00 173.00 130.00 9.00 517.00

Net current assets Debentures Net Assets Share capital: Ordinary shares Profit and Loss reserve (see working) Non-Controlling Interest (see working) Share premium

427.50 (1,700.00) 8,048.70 2,700.00 1,571.20 1,607.50 2,170.00 8,048.70

Consolidated Income Statement

Adjusts

Turnover Cost of sales Gross Profit Operating expenses Operating Profit Tax Share of A's Profit after tax Profit and total comprehensive income for the period

Total £'000 2,860.00 2,183.50 676.50 (115.00) 561.50 (173.0) 4.00 392.50

PURP (500.00) (486.50) (13.50)

40% x 10

=

2.0

Attributable: Owners of Home plc Non-controlling interest Group share

β

337.00 55.50 392.50

Consolidated Statement of changes in Equity for the year ended 31st December 2011

Balance Brought Forward Total comprehensive income for the period Dividends paid Balance carried forward

Attributable to the owners of Hot plc Share Retained Capital Earnings Total 2,700.00 1,364.20 4,064.20

2,700.00

337.00 (130.00) 1,571.20

337.00 (130.00) 4,271.20

NCI

Total

1,561.00

5,625.20

Share Premium 2,170.00

55.50 (9.00) 1,607.50

392.50 (139.00) 5,878.70

2,170.00...