ACCA paperanswers section 1 introduction the group statement of financial position

www.kaplanpublishing.co.uk Section Introducing the group statement of financial position Answer Lion W1 Group structure One year ago Parent 75% / 25% NCI Subsidiary W2 Net assets of the subsidiary At acquisition At year-end $m $m Ordinary shares 100 100 Retained earnings 60 200 160 300 The rise in the net assets is $140m = post-acquisition profits and allocated 75% to the parent w5 and 25% to the NCI w4 W3 Goodwill $m 300 100 (160) 240 Parent's investment in the subsidiary NCI at acquisition Less the net assets at acquisition Goodwill W4 NCI Opening balance Plus the NCI% in the subsidiary's post-acquisition profits NCI at the year-end $m 100 35 135 (25% x 140) W5 Retained earnings Parent retained earnings Plus the parent's % in the subsidiary's post-acquisition profits Group statement of financial position (75% x 140) w3 (500 + 400) (150 + 100) $m 240 900 250 1,390 Ordinary shares Retained earnings NCI Equity w5 w4 650 265 135 1,050 Liabilities (140 + 200) Goodwill Tangible assets Current assets 340 1,390 A student's guide to Group Accounts by Tom Clendon, Second Edition, published by Kaplan Publishing $m 160 105 265 www.kaplanpublishing.co.uk Section Introducing the group statement of financial position Answer Tiger W1 Group structure One year ago Parent 60% /40% NCI Subsidiary W2 Net assets of the subsidiary At acquisition At year-end $m $m Ordinary shares 200 200 Retained earnings 100 300 300 500 The rise in the net assets is $200m = post-acquisition profits and allocated 60% to the parent w5 and 40% to the NCI w4 W3 Goodwill $m 900 50 (300) 650 Parent's investment in the subsidiary NCI at acquisition Less the net assets at acquisition Goodwill W4 NCI Opening balance Plus the NCI% in the subsidiary's post-acquisition profits NCI at the year-end $m 50 80 130 (40% x 200) W5 Retained earnings Parent retained earnings Plus the parent's % in the subsidiary's post-acquisition profits (60% x 200) Group statement of financial position Goodwill Tangible assets Current assets w3 (1,500 + 600) (100 + 100) $m 650 2,100 200 2,950 Ordinary shares Retained earnings NCI Equity w5 w4 1,000 520 130 1,650 Liabilities (1,100 + 200) 1,300 2.950 A student's guide to Group Accounts by Tom Clendon, Second Edition, published by Kaplan Publishing $m 400 120 520 ... Plus the parent's % in the subsidiary's post-acquisition profits (60% x 200) Group statement of financial position Goodwill Tangible assets Current assets w3 (1, 500 + 600) (10 0 + 10 0) $m 650 2 ,10 0...www.kaplanpublishing.co.uk Section Introducing the group statement of financial position Answer Tiger W1 Group structure One year ago Parent 60% /40% NCI Subsidiary W2 Net assets of the subsidiary At... Equity w5 w4 1, 000 520 13 0 1, 650 Liabilities (1, 100 + 200) 1, 300 2.950 A student's guide to Group Accounts by Tom Clendon, Second Edition, published by Kaplan Publishing $m 400 12 0 520