Provide the consolidated accounts of final headache ltd

Reference no: EM131483354

Corporate Accounting Assignment

Final Headache Ltd acquires all of the shares in Solutions Ltd on 30 June 2018. The financial statements for Final Headache Ltd and Solutions Ltd at 30 June 2019 (one year after acquisition) are provided below.

Additional information -

Final Headache Ltd acquires Solutions Ltd on 30 June 2018 for $1.1 million cash.
The directors of Final Headache Ltd consider that in the year to 30 June 2019 the value of
goodwill has been impaired by an amount of $20 000.
There are no intragroup transactions.
Solutions Ltd did not issue any shares during 2019.
The tax rate is 30 per cent.
On the date at which Final Headache Ltd acquires Solutions Ltd, the carrying amount and fair value of the assets of Solutions Ltd are:

	Carrying amount ($000)	Fair value ($000)
Cash	150	150
Accounts receivable	200	200
Land	750	800
Plant (cost of $1 000 000, accu,ulated depreciation of $200 000)	800	900
	1,900	2,050

No revaluations are undertaken in Solutions Ltd's accounts before consolidation.

At the date of acquisition of Solutions Ltd, Solutions Ltd's liabilities amount to $1.050 million and there are no contingent liabilities.
The plant in Solutions Ltd is expected to have a remaining useful life of 10 years from 30 June 2018, and no residual value.

Required -

Provide the consolidated accounts of Final Headache Ltd and Solutions Ltd as at 30 June 2019 with the following:

-Goodwill computation

-Consolidation journal entries to:

Revalue the assets of Solutions Ltd so that goodwill can subsequently be accounted for
Eliminate the investment in Solutions Ltd and the pre-acquisition capital and reserves of Solutions Ltd
Recognise impairment of goodwill
Additional depreciation and decrease in Deferred tax liability

Consolidation worksheet for Final Headache Ltd and its controlled entity for the period ending 30 June 2019 showing columns of Eliminations and adjustments and Consolidated amounts and Consolidated statement of financial position of the Final Headache group.

Reference no: EM131483354

Questions Cloud

How confident are you of the accuracy of these components : Knowing the components of the EOQ formula, how confident are you of the accuracy of these components?

Discuss expansionary fiscal policy : Explain why increasing government purchases of goods and services is expansionary fiscal policy. Would increasing taxes or reducing transfer payments.

Is gresham law much of a problem in today economy : Gresham's law says that bad money drives good money out of the marketplace. One example was the 1965 U.S. Coinage Act, which replaced silver quarters.

Define the private investment : During the late 1990s, the Clinton administration had very low deficits and actually ran 3 years of surpluses. As a result, interest rates were low.

Provide the consolidated accounts of final headache ltd : ACT 503 Assignment. Provide the consolidated accounts of Final Headache Ltd and Solutions Ltd as at 30 June 2019 with the following - Goodwill computation

Should leaders of companies that produce fattening food : Should leaders of companies that produce fattening food that can lead cardiac problems and obesity be targeted for being socially irresponsible?

Identify the different entities of each entity : Database Systems and Administration - (ECM38IS) Design an Entity Relationship Diagram (ERD) to model the above scenario. Identify the different entities of each entity.

List and explain the common measures of central tendency : list and explain the common measures of central tendency

The bill-of-materials and material requirements planning : The bill-of-materials (BOM) includes all the following information EXCEPT:

User Account

All Pages