required in each case:

Prepare the statements of financial position of Parent Ltd and the consolidated statement of financial

position as at 1 January 20X7 after each transaction, using for each question the statements of

financial position of Parent Ltd and Daughter Ltd as at 1 January 20X7 which were as follows:

question 5:

On 1 January 20X7 Parent Ltd acquired 75% of the ordinary shares in Daughter Ltd for £9,000 cash.

The fair value of the net assets in Daughter Ltd was their book value. Assume in each case that the
noncontrolling interest is measured using Method 1.

1. Prepare Parent ‘s statement of financial position at 1/1/20x7

Ordinary share: 40,500
Retained earnings: 4,500

Cash: 20,000-9,000
Investment in Daughter Ltd: 9,000
Other net assets: 25,000
2. Prepare the group’s consolidated statement of financial position:
S1: Cách 1: Total Goodwill (reported in the group’s consolidated statement of financial
position)=(1)+ (2) = Fair value of consideration paid+ Fair value of NCI at acquisition date-
100% Fair value of net assets of subsidiary= 9,000+ 25%x10,800-100%x10,800=

Cách 2:
(1) Goodwill (parent’s shareholders)= Fair value of consideration paid- (% share of parent in
subsidiary x Fair value of net assets of subsidiary= 9,000-75%x10,800=
(2) Goodwill (of NCI)= Fair value of NCI at the date of acquisition- (% share of non-
controlling shareholders in subsidiary x Fair value of net assets of subsidiary)=
25%x10,800-25%x10,800= 0
Total goodwill (trình bày trên BC hợp nhất của tập đoàn)=900
 S2: Add assets and liabilities together:

Ordinary share: 40,500

Retained earnings: 4,500

Cash: 20,000-9,000
Investment in Daughter Ltd: 9,000
Other net assets: 25,000

Group’s consolidated statement of financial position

Cash: 11,000+ 2,000
Goodwill: 900
Other net asset: 25,000+8,800
Total assets: 47,700
S3:
Non-controlling interest= 25%x10,800=2,700

The group’s equity:

Ordinary share: 40,500
Retained earnings: 4,500
Non-controlling interest: 2,700
Total equity: 47,700