Q3

 On 1 January 2009 Harry enterprise acquired an 80% share in Ollie enterprise. Ollie has not issued any additional ordinary shares since the acquisition by Harry. The draft statements of financial position of Harry and Ollie as at 31 December 2011 are as follows: Harry 000 ASSETS Non-current assets Intangible assets Tangible assets Investment in Ollie Current assets Inventory Trade receivables Bank TOTAL ASSETS EQUITY AND LIABILITIES Equity Ordinary shares 1 Ordinary shares 50p Share premium account Retained earnings Liabilities Non-current liabilities Debentures Current liabilities TOTAL EQUITY AND LIABILITIES Ollie 000

73 6,520 1,577 8,170 540 370 80 990 9,160

21 2,343 2,364 95 64 20 179 2,543

3,700 2,100 900 6,700 1,500 960 9,160 800 250 437 1,487 900 156 2,543

(Note that figures in the above table are in 000s - thousands)

The following information is also available: 1.  The fair value of all assets and liabilities at the acquisition date was equal to book value. 2. The retained earnings of Ollie at the acquisition date were 290,000.

Required:  Prepare the Consolidated Statement of Financial Position (Consolidated Balance Sheet) for the Harry group as at 31December 2011. (17 marks)

5FA0612