Prepare the consolidated statement, Financial Econometrics

Power is a listed group reporting under IFRS. The group was established when Power purchased an 80% of the ordinary share capital of Shuttle, a listed company, on 1 January 2009 for $7.6 million. At that date, Shuttle's financial statements showed retained earnings of $4.6 million and a revaluation surplus of $570,000.

The fair value of Shuttle's net assets at the date of acquisition was higher than their carrying amount due to the following items:

                                                                                                                                       $'000
Contractual customer relationships not recognised in Shuttle's financial statements     200
Excess of market value over the carrying amount of inventories                                     30

The customer relationships were deemed to have an average remaining useful life of five years at 1 January 2009. The inventories were sold later in that year.

Power opted to measure the non-controlling interests in Shuttle at their fair value at the date of the acquisition. The share price of Shuttle on that date was $18.00.

During the current year, on 1 April 2010, Power was able to purchase another 10% of the ordinary share capital of Shuttle from a minority shareholder at a cost of $1.18 million.

Prepare the consolidated statement of financial position of the Power Group (as a consolidation schedule) as at 31 December 2010.  

Notes

  • Ignore any deferred tax effect of adjustments.
  • Work to the nearest $1,000.

Explain and briefly justify the key changes being made to consolidation proposed by ED 10 Consolidated Financial Statements.

Posted Date: 3/15/2013 3:12:13 AM | Location : United States







Related Discussions:- Prepare the consolidated statement, Assignment Help, Ask Question on Prepare the consolidated statement, Get Answer, Expert's Help, Prepare the consolidated statement Discussions

Write discussion on Prepare the consolidated statement
Your posts are moderated
Related Questions
Question 1: a) What do you meant by equilibrium National Income and to what extent is economic growth beneficial to an economy? b) Explain using both diagrams and mathemat

In May 2003, Gencorp acquired Sequa Corp.'s propulsion subsidiary ARC for $133million in cash and $11 million in transactions costs. Table below lists selected information about

1. Apply investment appraisal techniques to project cash flows in different business scenarios and in situations of uncertainty, to arrive at investment decisions and to evaluate t

A new capital investment that will cost $2.5 million and will generate perpetual net cash flows of $400,000 a year. Investors could expect to earn 8 percent elsewhere while taking

I have a case study to do for my financial markets and institutions subject. I''ve been struggling with one of the questions. So I need help if possible, the question is "What do y

Question : A proprietary life company issues only non-profit guaranteed growth bonds. The company invests only in equities with an expected return of 10% p.a, the risk free rat

PASE plc is a UK-based international energy company, which currently operates wholly-owned subsidiaries in Europe and North America. PASE plc's strategy is to generate future growt

Financing Throughout the life of this Company, Dwight is proud of the fact that he has never before required any outside financing--other than his line of credit. The line of

Acceptance Sampling is a statistical measure used in quality control. A company cannot test all of its products because of ruining the products, or the volume of products being ver

How can economies of scale be a characteristics that makes for a good industry (please be specific) and what industry (besides automobiles) do you consider to be a "good industry"