Plateau

Calculation of goodwill for subsidiary Adjustments for retained earnings

$’000 $’000 Plateau Sahara
Investment in subsidiary $’000 $’000
Shares in Plateau 9,000 [(3mx1/2) x $6] Unadjusted balance 24,100 8,900
Cash 3,000 [3m x $1] Unrealised profit on inventory sale (300) [(2700x100%/150%) x 1/3]
12,000 Unrealised gain on sale of plant (500) ($2500-$2000)
less: net assets acquired Over-depreciation - plant 100 ($500/ 5yrs)
Share capital 4,000 Goodwill impairment (900)
Retained earnings 6,500 (at the acq day 10/9/2017) Retained earnings (adjusted) 22,800 8,300
Fair value adjustment less: pre-acq reserve (6,500)
- Land 700 Ending retained earnings 22,800 1,800
11,200 Share of net assets 100% 75% Total RE
Share of net assets 75% 22,800 1,575 23,375
(8,400) NCI =2800 NCI = 525
Goodwill 3,600
less: impairment charge (900)
Goodwill balance - 30 Sep 2007 2,700
Plateau
Consolidated Statement of Financial Position as at 30 Sep 2007
$’000 $’000
Non-current assets
PPE (net) 29,100 [+700 fair reval - 500 gain + 100 overdep]
Investments 8,500 [$20500 - $12000]
Goodwill 2,700
40,300

Current assets
Inventory 12,800 [-300 unreal profit ]
Trade and other receivables 3,250 [-850 intragrp - (800x75%) div S ]
Cash and cash equivalents 4,130 [+130 cash in transit] ($850-$720)
20,180
Total assets 60,480

Equity & Reserves

Share capital 1,200
Retained earnings 24,375
36,375
Non-controlling interests 3,325 [2800 pre + 525 post]
39,700

Non-current Liabilities
7% loan notes 6,000

Current Liabilities
Trade and other payables 14780 [720 intragrp - (800 x 75%) div S]
Other payables

Total equity & liabilities 60,480

Procter
Calculation of goodwill for subsidiary Adjustments for retained earnings
$’000 $’000 Procter Samson
Cost of investment $’000 $’000
Shares in Procter*** 24,000 Unadjusted balance 30,200 26,000
Cash consideration 1,600 [10000 Share Capital x80% x $0.2] Under-depreciation - plant (600) [$300000/5yrs]
NCI 7,000 [10000 share x 20% x$3.5] Unrealised profit on sale of eqm (40) [840 - 800]
32,600 Over-depreciation - eqm 10 $40/4yrs
less: net assets acquired Unrealised profit on inventory sale (500) [(16000-14500)
Share capital 10,000 Retained earnings (adjusted) 29,700 25,370
Retained earnings 18,000 RE at 1/10/2015 less: pre-acq reserve (18,000)
Fair value adjustment Ending retained earnings 29,700 7,370
- Revaluation gain/reserve 3,000 Share of net assets 100% 80% Total RE
- Provision for warranty (1,000) 29,700 5,896.00 35,596
30,000 1,474.00 NCI
Goodwill 2,600
Procter Intragroup balances
Consolidated Statement of Financial Position as at 30 Sep 2016 Procter Samson

$’000 $’000 Receivable Payable

Non-current assets $’000 $’000
[+3m reval gain - 600k depn, - 40k unreal
PPE (net) 69970 + 10 over dep] Unadjusted bal 4,400 1,700
Investments 8,000 Goods-in-transit
Goodwill 2,600 Cash-in-transit
80,570 Adjusted bal

Current assets

Inventory
Trade receivables
Bank

Total assets

Equity & Reserves

Share capital
Capital reserve
Retained earnings

Non-controlling interests

Non-current Liabilities
10% loan notes

Current Liabilities
Trade payables
Dividends payable
Provisions
Other payables

Total equity & liabilities