ĐỀ TIẾNG ANH TỔNG HỢP. Vì môn này rất khó nên cần ôn kỹ, làm bài tập nhiều. Chú ý ở những phần ít được học ở chương 4 trở về sau. ĐỀ TIẾNG ANH TỔNG HỢP. Vì môn này rất khó nên cần ôn kỹ, làm bài tập nhiều. Chú ý ở những phần ít được học ở chương 4 trở về sau. ĐỀ TIẾNG ANH TỔNG HỢP. Vì môn này rất khó nên cần ôn kỹ, làm bài tập nhiều. Chú ý ở những phần ít được học ở chương 4 trở về sau. ĐỀ TIẾNG ANH TỔNG HỢP. Vì môn này rất khó nên cần ôn kỹ, làm bài tập nhiều. Chú ý ở những phần ít được học ở chương 4 trở về sau.
Thuhien- 2019 1 On 1 July 2019, A Ltd pays £870,000 to acquire the entire share capital of B Ltd The equity of B Ltd on that date consists of ordinary share capital of £400,000 and retained earnings of £210,000 The fair value of the non-current assets of B Ltd on 1 July 2019 exceeds their carrying amount by £35,000 Tax rate 20% The amount paid for goodwill by A Ltd is: a £232,000 b £470,000 c £260,000 d £225,000 2 On 1 May 20X4, C Ltd paid £430,000 to acquire the entire share capital of D Ltd The equity of D Ltd on that date consisted of ordinary share capital of £200,000 and retained earnings of £90,000 All of its assets and liabilities were carried at fair value On 30 April 20X6, the retained earnings of C Ltd and D Ltd are £970,000 and £115,000 respectively Goodwill arising on consolidation has suffered an impairment loss of 25% since 1 May 20X4 Group retained earnings at 30 April 20X6 are: a £1,085,000 b £960,000 c.£ 980,000 d £1,050,000 (The amount paid for goodwill was £140,000 (£430,000 – £290,000) So the impairment loss is £35,000 (25% of £140,000) The retained earnings of D Ltd have increased by £25,000 since acquisition Therefore group retained earnings at 30 April 2016 are (£970,000 +£25,000 – £35,000) = £960,000) 3 On 1 January 2009, P Ltd paid £480,000 to acquire 65% of the ordinary share capital of Q Ltd The equity of Q Ltd on that date consisted of ordinary share capital of £200,000 and retained earnings of £150,000 The fair value of the non-current assets of Q Ltd on 1 January 2009 exceeded their carrying amount by £250,000 Goodwill arising on consolidation has suffered an impairment loss of 40% between 1 January 2009 and 31 December 2016 The goodwill figure which should be shown in the consolidated statement of financial position at 31 December 2016 is: a £151,500 b £78,000 c £54,000 d £36,000 (The amount paid for goodwill by P Ltd was £90,000 (£480,000 – 65 % of (£350,000 + £250,000)) The impairment loss is £36,000 (40% of £90,000) so the goodwill figure at 31 December 2016 is £54,000 4 On 1 January 2013, E Ltd paid £560,000 to acquire 80% of the ordinary share capital of F Ltd The equity of F Ltd on that date consisted of ordinary share capital of £300,000 and retained earnings of £150,000 All of its assets and liabilities were carried at fair value On 31 December 2016, the retained earnings of E Ltd and F Ltd are £1,870,000 and £65,000 respectively Goodwill arising on consolidation has suffered an impairment loss of 70% since 1 January 2013 The retained earnings figure which should be shown in the consolidated statement of financial position at 31 December 2016 is: 1 Thuhien- 2019 a £1,662,000 b £1,725,000 c £1,645,000 d £1,708,000 (The amount paid for goodwill was £200,000 (£560,000 – 80 % of (£300,000 + £150,000)) so the impairment loss is £140,000 (70 % of £200,000) The retained earnings of F Ltd have decreased by £85,000 since acquisition 80 % of this is £68,000 Therefore group retained earnings at 31 December 2016 are (£1,870,000 – £68,000 – £140,000) = £1,662,000.) 5 Which of the following is not an example of an intra-group balance? a A loan made by one subsidiary to another b A trade receivable owing to a subsidiary by an individual who is one of its customers c A loan made by a parent company to a subsidiary d A trade payable owing to a subsidiary by its parent company 6 G Ltd owns 90% of the ordinary share capital of H Ltd The inventories of H Ltd on 30 November 2015 include goods purchased from G Ltd for £300,000 These goods had been sold to H Ltd by G Ltd at a markup of 50% The amount of unrealised profit which should be subtracted from group inventories and from group retained earnings is: a £90,000 b £150,000 c £100,000 d.£135,000 7 During an accounting period, a parent company sells goods to one of its subsidiaries for £10,000 These goods cost the parent company £6,000 At the end of the accounting period, three-quarters of the goods have been sold by the subsidiary to customers outside the group but the remaining one-quarter of the goods are still held in inventories The adjustments required when preparing the group statement of comprehensive income are: a Subtract £10,000 from group sales revenue and subtract £6,000 from group cost of sales b Subtract £10,000 from group sales revenue and subtract £11,000 from group cost of sales c Subtract £10,000 from group sales revenue and subtract £9,000 from group cost of sales d Subtract £10,000 from group sales revenue and subtract £10,000 from group cost of sales 8 During an accounting period, a parent company sells goods to one of its subsidiaries for £200,000 This represents cost plus 25% At the end of the accounting period, one fifth of these goods are still held in the subsidiary's inventories The cost of sales figures reported in the parent's and the subsidiary's financial statements are £890,000 and £530,000 respectively The parent company has a 60% interest in the 2 Thuhien- 2019 subsidiary's ordinary shares The cost of sales figure that should appear in the consolidated statement of comprehensive income for the year is: a £1,228,000 b £1,260,000 c £1,212,000 d £1,096,000 9 A parent company owns 73% of a subsidiary's ordinary shares The non-controlling interest in the group statement of financial position is measured at the appropriate proportion of the subsidiary's identifiable net assets An impairment loss in relation to goodwill arising on consolidation should be accounted for in the group statement of comprehensive income as follows: a Recognise 100% of the impairment loss as a group expense b Recognise 73% of the impairment loss as a group expense and subtract the remaining 27% from the profit attributable to the non-controlling interest c Recognise 73% of the impairment loss as a group expense but make no further adjustments d Do nothing 10.The amount of profit attributable to the non-controlling interest in a 90% subsidiary is generally equal to: a 10% of the subsidiary's profit before tax c 10% of the group profit before tax b 10% of the group profit after tax d 10% of the subsidiary's profit after tax 11.When preparing a set of group financial statements, the correct treatment of dividends paid by a subsidiary company to its non-controlling shareholders is to: a Cancel them against dividends received by the parent company b Ignore them completely c Add them in the non-controlling interest column in the group statement of changes in equity d Deduct them in the non-controlling interest column in the group statement of changes in equity 12 In an accounting period, a parent company has pre-tax profits of £5m Its 75% subsidiary has pre-tax profits of £2m The tax expense for both companies is equal to 30% of profit before tax The profit attributable to the non-controlling interest is: a £1,750,000 b £1,225,000 c £500,000 d £350,000 3 Thuhien- 2019 13 (5.1)On 1 July 20X7, Investor Ltd (Investor) acquired all of the ordinary shares in Investee Ltd (Investee) by paying cash At that date, the equity of Investee was as follows: Issued capital (100.000 shares issued) : 100.000 $ Retained earnings: 80.000 $ Total equity: 180.000$ Acquisition – related coast totaled 2.000$ On acquisition, Investor revalued the asset of Investee to fair value, resulting in a revaluation increment of 20.000$ The revaluation led to the recognition of a deferred tax liability of 6.000$ The amount of goodwill included in the consolidated statement of financial position was 10.000 What was the amount of the consideration paid by Investor for the shares in Investee? a 202.000 $ b 204.000 $ c 210.000$ d 212.000 $ 14.(5.2) On the acquisition of a subsidiary by an investor, purchased goodwill should be: a Recorded in a consolidation adjusting entry b Recognised separately in the financial statements of the investor only c Recorded separately in the financial statements of the subsidiary only d Recognised in the financial statements of either the subsidiary or investor 15.(5.3) On 8 August 20X3, Alpha Ltd (Alpha) acquired 20.000 shares in the Beta Ltd (Beta) that gave Alpha control over Beta in return for 10.000 of its own shares At that date, Alpha’s shares had a market value of 2,7 $ each, while Beta’s shares had a market value of 1,3 $ each Fees paid to legal advisers for the transaction totalled 2.000$ What is the fair value of the consideration transferred? a 26.000 $ b 27.000$ c 28.000$ d 29.000$ 16.(5.4) In relation to goodwill arising from a business combination, which of the following statements in accordance with IFRS 3 Business Combination a Goodwill should be measured as cost less accumulated amortization b Goodwill should be amortised on a straight – line basis over its useful life c Goodwill should be measured at cost less accumulated impairment losses d Goodwill is only tested for impairment if circumstances indicate it may be impaired 17.(5.5) Which of the following statements is not a key feature of the acquisition method? 4 Thuhien- 2019 a An acquirer being identified for each business combination b The acquired identifiable net assets being measured at the fair value c The cost of business combination being measured at fair value of the net assets received from the acquiree d The goodwill being measured as the consideration transferred plus the amount of any NCI interest plus the fair value of any previously held equity intersest in the acquire less the fair value of the identifiable net assets acquired 18.(5.6) On 1 july 20X7, Big Ltd (Big) agreed to purchase the assets and liabilities of Smal Ltd (Small) for 400.000$ cash, plus 1 million shares in Big At this date, the fair value of each share in Big was 1.2$ Costs directly attributable to the business combination totaled 5.000$ The statement of financial position of Small as at the date of purchase is presented bellow: Small Ltd: Statement of financial position as at 1 July 20X7 Assets 1.000 $ Liabilities 1.000 $ Trade receivables 250 Bank overdraft 50 Inventory 520 Creditors 300 Land & Buildingd (net book value) 800 Equity (Capital & retained earnings) 1.220 Total 1.570 Total 1.570 In the negotiation process, Big has determined the following fair value for Small’s assets and liabilities (assume that no deferred tax asset or liabilities arose from the business combination) 1.000 $ 1.000 $ Trade receivables 240 Bank overdraft 50 Inventory 500 Creditors 300 Land & Buildingd (net book value) 1.000 What is the amount of goodwill purchased by Big on 1 July 20X7: a 160.000 $ b 165.000 $ c 380.000$ d 385.000$ 19.(5.7) On 1 August 20X2, Parent Ltd (parent) acquired a 70% interest in Sub Ltd (Sub) At the date the entity section of Sub’s statement of financial position revealed the following (1.000 $): Issued capital: 500; general reserve: 100; retained earnings: 50 At acquisition date, Sub revalued its non-current, non-depreciable assets to fair value (an increase of 200.000$ over the carrying amounts) Assume a tax rate of 30% 5 Thuhien- 2019 Parent determined that it had paid 100.000$ for goodwill Non-controlling interest is measured at the proportionate share of the fair value of the identifiable net asset of Sub Which of the following proforma entries would be processed in the consolidation worksheet for the year ended 30 June 20X3 A Dr- Share capital : 350 B Dr- Share capital : 350 Dr- General reserve : 70 Dr- Genaral reserve : 70 Dr- Retained earnings : 35 Dr- Retained earnings : 98 Dr- Asset revaluation surplus: 98 Dr- Business combination reserve: 98 Dr- Goodwil : 100 Dr- Goodwil : 100 Cr- Investment in Sub : 653 Cr- Investment in Sub : 653 C Dr- Share capital : 350 D Dr- Share capital : 500 Dr- Genaral reserve : 70 Dr- Genaral reserve : 100 Dr- Retained earnings : 35 Dr- Retained earnings : 140 Dr- Goodwil : 100 Dr- Goodwil : 100 Cr- Investment in Sub Cr- Investment in Sub : 555 : 890 20.(5.8) Small Ltd (Smal) is a wholly owned subsidiary of Large Ltd (Large) During the fiannacial year ended 30 June 20X3, Small declared and paid an interim dividend of 10.000$ and declared a final dividend of 20.000$ (which remains payable at year end) Large recognizes dividends as revenue when they are declared by Small Which of the following proforma entries would be processed in the consolidation worksheet for the financial year ended 30 June 20X3 in relation to the dividends provided by Small A A Dr- Dividend income : 30 B B Dr- Final dividend payable :20 Cr- Interim income :10 Dr- Dividend income :30 Cr- Final dividend (retained earning):20 Cr-Interim dividend (Retained earnings): 10 Cr- Final dividend (retained earnings) :20 Cr- Devidend receivable :20 C C Dr- Dividend income :20 D D Dr- Final dividend payable :30 Dr- final dividend payable :20 Dr- Dividend income :30 Cr- Final dividend (retained earnings) :20 Cr-Interim dividend (Retained earnings): 10 6 Thuhien- 2019 :20 Cr- Final dividend (Retained earnings) :20 Cr- Devidend receivable Cr- Devidend receivable :30 21.(5.9) In accordance with IFRS 10 – Consolidated financial statements, a consolidated statement of financial position (or note thereto) would not present information relating to which of the following? a Investments in subsidiaries c goodwill acquired by the group b Loans to entities not related to the group d NCI’share of consolidated net assets 22.(5-10) On 15 August 20X2, Parent Ltd (parent) obtained control of a subsidiary via the acquisition of a 60% shareholding During the year ended 30 June 20X5, the subsidiary declared and paid an interim dividend of 10.000$ On 30 June 20X5, the subsidiary declared a dividend of 20.000$ Parent recognizes dividend as revenue when they are declared by the subsidiary Assume that Parent is exempt from income tax on dividends received from group entities Tax rate is 30% Which of the following proforma entries would be processed in the consolidation worksheet for the year ended 30 June 20X5 A Dr- Dividend income : 30.000 B Dr- Deferred tax asset :9.000 Dr- dividend payable : 20.000 Dr- Dividend income :30.000 Cr- Interim dividend (RE) :10.000 Dr- Dividend payble: 20.000 Cr- Final dividend (RE) :20.000 Cr-Income tax expense :9.000 Cr- Dividend receivable : 20.000 Cr- Interim dividend (RE) :10.000 Cr- Final dividend (RE) :20.000 Cr- Devidend receivable :20.000 C Dr- Dividend income :18.000 D Dr- Deferred tax asset :5.400 Dr- Dividend payable :12.000 Dr- Dividend income :18.000 Cr- RE(Interim dividend) :6.000 Dr- Dividend payblae: 12.000 Cr-RE (final dividend) :12.000 Cr-Income tax expense :5.400 Cr- Dividend receivable :12.000 Cr- Interim dividend (RE) :6.000 Cr- Final dividend (RE) :12.000 Cr- Devidend receivable :12.000 7 Thuhien- 2019 23 (5.11) IFRS 10- Consolidated financial statement sets out how to determine whether one entity has control over another entity Which of the following statements is in accordance with either IFRS 10 definition control or with the guidance prescribed to help identify whether control exists over another entity? a The investor must be the only party that receives variable returns from the other entity b The investor must be have greater than 50% of the voting rights in the other entity c The investor must be represented on the board of directors or governing body of the other entity d The investor must have existing rights that give the current ability to direct relevant activities of the other entity 24.(5-12) On 1 July 20X2, Holding Ltd (Holding) purchased all the issued capital of Subsidiary Ltd (Subsidiary) for 400.000$ cash At the acquisition date, the entity section in the statement of financial position of Subsidiary contained the following information (1.000 $): Issued capital: 200; retained earnings: 110 In addition, Holding determined that Subsidiary held equipment with a fair value of 60.000$, which was recorded in the statement of financial position of Subsidiary at a cost of 80.000$ and accumulated depreciation of 40.000$ Subsidiary decided not to revalue the equipment in tits own accounts The tax rate: 30% Which of the following consolidation adjusting entries would be processed on acquisition date? A Dr- Share capital : 200 B Dr- Share capital : 200 Dr- Retained earnings : 110 Dr- Retained earnings : 110 Dr- Deferred tax Asset : 6 Dr- Accumulated depreciation: 40 Dr- Accumulated depreciation: 40 Dr- Goodwil : 76 Dr- Goodwil : 64 Cr- Equipment : 20 Cr- Equipment : 20 Cr- Deferred tax liability : 6 Cr- Investment in Sub : 400 Cr- Investment in Sub : 400 C Dr- Share capital : 200 D Dr- Share capital : 200 Dr- Retained earnings : 110 Dr- Retained earnings : 110 Dr- Accumulated depreciation: 40 Dr- Goodwil : 90 Dr- Goodwil : 70 Cr- Investment in Sub : 400 Cr- Equipment : 20 Cr- Investment in Sub : 400 8 Thuhien- 2019 25.(5.13) Which of the following statements is consistent with the principle of control as defined by IFRS 10 Consolidated Financial Statements? a The investor must be exposed to a return from the investee b The investor has the ability to use its power over the investee to affect the amount of the returns from the investee c An investor’s power over investee relates to its ability to determine the amount of variable returns received from investee d If two or more investors have existing rights to direct different relevant activities, no investors can have control over the investee 26.(5.19) Parent Ltd (Parent) acquired 70% interest in Subsidiary Ltd (Subsidiary) on 1July 20X0 During the financial year ended 30 June 20X1, Subsidiary sold inventory to Parent for 8.000 $ The original cost to Subsidiary was 6000$ Half of the inventory was still on hand with Parent at 30 June 20X1 Assume a tax rate of 30% Which of the following proforma journal entries would be processed in the consolidated worksheet for the financial year ended 30 june 20X1? a A Dr- Sale : 8.000 b B Dr- Sale : 8.000 Dr- Income tax expense : 300 Dr- Income tax asset : 600 Cr- COGS : 7.000 Cr- COGS : 6.000 Cr- Inventory : 1.000 Cr- Inventory : 2.000 Cr- Deferred Tax liability : 300 Cr- Income Tax Expense : 600 c C Dr- Sale : 8.000 d D Dr- Sale : 8.000 Dr- Deferred tax asset : 300 Dr- Income tax expense: 600 Cr- COGS : 7.000 Cr- COGS : 6.000 : 2.000 Cr- Inventory : 1.000 Cr- Inventory : 600 Cr-Income tax expense : 300 Cr- Deferred Tax liability 27.(5.20) Parent Ltd (Parent) acquired 70% interest in Subsidiary Ltd (Subsidiary) on 1July 20X0 During the financial year ended 30 June 20X1, Subsidiary sold inventory to Parent for 8.000 $ The original cost to Subsidiary was 6000$ Half of the inventory was still on hand with Parent at 30 June 20X1 During the year ended 20 June 20X2, the remainder of the inventory was sold to parties external to the group 9 Thuhien- 2019 Assume a tax rate of 30% Which of the following proforma journal entries would be processed in the consolidated worksheet for the financial year ended 30 june 20X2? a Dr- Retained earnings : 700 : 1.000 b Dr- Retained earnings : 1.000 : 1.000 Dr- Income tax expense: 300 Dr- Income tax expense : 300 : 300 Cr- COGS Cr- COGS Cr- Deferred Tax asset c Dr- Retained earnings : 1.400 d Dr- Sale : 8.000 Dr- Income tax expense : 600 Cr- COGS : 8.000 Cr- COGS : 2.000 28.(5.21) Big Ltd (Big) owns 80% of Little Ltd (Little) On 1 July 20X3, Litle sold equipment to Big for 40.000$ At the time of the sale, the carrying amount of the equipment in the books of Little was 30.000$ The profit on this transaction was taxable The tax rate was 30% Both entities depreciate equipment at 10% on cost The equipment is still on hand with Big at 30 June 20X5 The consolidation worksheet for the financial year ended 30 june 20X5 contains the following: Big ($) Little ($) Profit for year 80.000 20.000 Retained earning (closing balance) 225.000 40.000 Note: the tax rate was 30% Which of the following proforma journal entries would be processed in the consolidated worksheet for the financial year ended 30 june 20X5 in regard to the equipment sold on 1 july 20X3? a A Dr- Accumulated depreciation: 1.000 b B Dr- Accumulated depreciation: 2.000 Dr- Income tax expense : 300 Dr- Income tax expense : 300 Dr- Retained earnings : 10.000 Dr- Deferred tax asset : 2.400 Cr- Depreciation expense : 1.000 Dr- Retained earnings : 6.300 Cr- Deferred tax asset : 300 Cr- Depreciation expense : 1.000 Cr- Equipment : 10.000 Cr- Equipment : 10.000 c C Dr- Accumulated depreciation: 1.000 d D Dr- Accumulated depreciation: 2.000 10 Thuhien- 2019 53 When preparing a consolidated statement of financial position, pre-acquisition portion of subsidiary’s retained earnings need to be frozen by off setting it from the cost of investments Which of the following is / are the reason for this? a) That portion of profit has been paid for by the parent as part of its investment b) It is not ethical for the parent to claim profits made before a company became a subsidiary c) To establish the true cost to the parent of acquiring the subsidiary’ s goodwill d) Otherwise group profits are inflated by acquiring subsidiary’s with high retained earnings a i & iii b ii & iii c iii & iv d i & iv 54 Any amount owed by one member of a group to another need to be cancelled when preparing the consolidated statement of financial posiition As at the year-end the parent’s receivable includes £90 due from the subsidiary; whereas the subsidiary reports that it owes only £60 to the parent The difference has arisen because of cash in transit Which is the correct way of dealing with the situation when preparing the consolidated statement of financial position a Cancel £90 from receivable and £60 from payable b Cancel £60 from both receivable and payable c Cancel £90 from parents receivable, £60 from subsidiary’s payable and include £30 with cash d Cancel £90 from both receivable and payable 55 As at the year end the parent’s statement of financial position reports rent receivable as an asset at £600 and this includes £150 due from the subsidiary Subsidiary reports rent payable as £150 Which of the following will be included in the consolidated statement of financial position? a Rent receivable as an asset at £450 and report nothing within Current liabilities as rent payable b Rent receivable as an asset at £600 and report nothing as current liability c Rent receivable as an asset at £600 and rent payable as a current liability at £150 d Rent receivable as an asset at £450 and rent payable as a current liability at £150 56.The parent paid £480 to acquire 75% of 300 ordinary shares issued by the subsidiary on 1st January 2012 when shares in the subsidiary were quoted at 180p per share and the equity and reserves of the 16 Thuhien- 2019 subsidiary were reported as £350 and fair valuation of its assets identified a gain of £50 What is the goodwill of the subsidiary on this date a.£ 240 b £ 130 c.£215 d £ 180 Consideration: 480 FV(NCI): 100 * 1,8 = 180 Total: 615 Fv(NA)= 350+50 =400 -> 215 57 Which of the following statements is / are correct with regard to accounting for goodwill? a) Goodwill needs to be written off as soon as it is identified b) Goodwill is reported continuously as an asset unless it is impaired c) Goodwill should be amortised over an estimated useful life d) Goodwill should be amortised over an estimated useful life not exceeding twenty years 58 If the capital and reserves, including fair valuation gain of a subsidiary is £5,400 and the parent acquires the whole of it for £4,000, the difference of £1,400 would be known as: a Goodwill b Negative goodwill c Badwill d Gain on acquisition 59.How is a negative goodwill reported on the consolidated statement of financial position? a As a negative asset – i.e shown on the asset side but as a deduction b Included fully in the Consolidated Retained Earnings c A tenth of it is included in Consolidated reserves and the remainder reported as a reserve d As a reserve, which may preferably be titled a capital reserve 60.With regard to preparing consolidated income statement which of the following statements are correct? i) Only the group portion of subsidiary’s sales, cost of sales and expenses are included ii) Non controlling interest is identified immediately after consolidating operating profit iii) Consolidated movement of equity includes only the parent company’s dividend iv) Only the group portion of the subsidiary’s post acquisition profit in brought forward in the consolidated movement of equity a iii & iv b i & ii c ii & iii d i & iv 17 Thuhien- 2019 61 When preparing a Consolidated Income Statement, inter-company transactions are cancelled Which one or more of the following would you say is the reason for this step? i) That is how it is expected to be done ii) Otherwise group earnings can be inflated by one within the group earning from another iii) Otherwise the same amount is double counted both as an income and expense iv) Failure to do so would be bad for the group image a i & ii b ii & iii c iv & iii d i & iii 62 Though a subsidiary is only partly owned, the whole of the subsidiary’s sales, cost of sale and expenses are aggregated with those of the parent to report the group’s income and expenses Which one or more of the following is/ are the justification for this? a) That is how it is expected to be done b) That is a legal requirement c) Otherwise the group would appear to be doing poorly with adverse effect on share price d) To report the income generated by and expenses incurred by the group as a whole 63 For identifying the group profit for the current year at which of the following points is the profit relating to non controlling interest removed a After identifying the profit for the year after tax b After identifying the net profit before tax c After identifying the gross profit d After identifying the operating profit 64 Alpha paid £300,000 on 1.1.2010 to acquire 80% of Beta On that date Beta had in issue one hundred thousand ordinary shares of £1 each issued at 120p each But quoted on this date at 145p Identify the goodwill in Beta in each of the following alternative situations i) On 1.1.2010 Beta's retained earnings were £30,000 and the fair value of its identifiable assets the same as their book value a £179,000 b £200,000 c £212,500 d £170,000 Cosideration (80%): 300.000 NCI: 100.000 *20% *1,45= 29.000 Total: 329.000 FV(NA)= 100.000+20.000+30.000 = 150.000 g/w: 179.000 18 Thuhien- 2019 65 Alpha paid £300,000 on 1.1.2010 to acquire 80% of Beta On that date Beta had in issue one hundred thousand ordinary shares of £1 each issued at 120p each But quoted on this date at 145p Identify the goodwill in Beta in each of the following alternative situations ii) On 1.1.2010 Beta's retained earnings were £60,000 and the fair value of their identifiable assets £80,000 more than their book value a £169,000 b £69,000 c £60,000 d £75,000 Cosideration (80%): 300.000 NCI: 100.000 *20% *1,45= 29.000 Total: 329.000 FV(NA)= 100.000+20.000+60.000+80.000 = 260.000 g/w: 69.000 66 Alpha paid £300,000 on 1.1.2010 to acquire 80% of Beta On that date Beta had in issue one hundred thousand ordinary shares of £1 each issued at 120p each But quoted on this date at 145p Identify the goodwill in Beta in each of the following alternative situations iii) On 1.1.2010 Beta's earnings were £50,000 and while their non current assets had a fair value £80,000 more than the book value, the investments held by Beta had a fair value £30,000 less than the book value A £30,000 b £59,000 c £37,500 d £109,000 Cosideration (80%): 300.000 NCI: 100.000 *20% *1,45= 29.000 Total: 329.000 FV(NA)= 100.000+20.000+50.000+80.000-30.000 = 220.000 g/w: 109.000 67 Alpha paid £300,000 on 1.1.2010 to acquire 80% of Beta On that date Beta had in issue one hundred thousand ordinary shares of £1 each issued at 120p each But quoted on this date at 145p Identify the goodwill in Beta in each of the following alternative situations iv) On 1.1.2010 Beta had an accumulated loss of £40,000, though its non current assets had a fair value which exceeded the book value by £120,000 a £129,000 b £69,000 c £96,000 d £120,000 Consideration: 300.000 Fv(NCI): 100.000*20%*1,45= 29.000 19 Thuhien- 2019 Total: 329.000 + 120.000 = 200.000 FV(NA): 100.000 (MG) + 20.000 (thang du) -40.000 g/w: 129.000 68 Alpha paid £750,000 to acquire 60% of equity in Beta on 1st January 2010 Beta’s Statement of financial position as at 31st December 2012 reports its Share capital as £500,000, Share premium as £50,000, and Retained earnings as £320,000 Identify the non controlling interest to be included in the consolidated statement of financial position as at 31st December 2012 in each of the following independent situations: Beta’s shares have a par value of £1 each i) On 1st January 2010 Beta’s retained earnings were £200,000 and the fair value of Beta’s identifiable non monetary assets were equal to the book value The value of non controlling interest on the date of acquisition is to be identified on the basis of price paid by Alpha to acquire control a £750,000 b £548,000 c £848,000 d £348,000 NCI: £ 750.000 *40/60 = 500.000 Post acq profit: 40% * (320.000- 200.000)): 48.000 548,000 69 Alpha paid £750,000 to acquire 60% of equity in Beta on 1st January 2010 Beta’s Statement of financial position as at 31st December 2012 reports its Share capital as £500,000, Share premium as £50,000, and Retained earnings as £320,000 Identify the non controlling interest to be included in the consolidated statement of financial position as at 31st December 2012 in each of the following independent situations: Beta’s shares have a par value of £1 each ii) On 1st January 2010 Beta’s retained earnings were £160,000 , the fair value of its non current assets exceeded their book value by £100,000 and Beta’s shares were quoted at 225 p each a £978,000 b £450,000 c £514,000 d £528,000 NCI: £ 2,25 * 200.000 = 450.000 Post acq profit: 40% * (320.000- 160.000)): 64.000 514,000 70 Alpha paid £750,000 to acquire 60% of equity in Beta on 1st January 2010 Beta’s Statement of financial position as at 31st December 2012 reports its Share capital as £500,000, Share premium as £50,000, and Retained earnings as £320,000 Identify the non controlling interest to be included in the 20