Solution of Murder, Mystery and Suspense

60% 80%
Murder Mystery Suspense
10%
Effective interest = (60% x 80%) + 10% = 58%
Non- Controlling interests= 100% - 58% = 42%

Murder in Murder in
+ +
Mystery Suspense
Investments in Co’s 900 144
Fair value of non-controlling interests 536 210
Fair value of 10% equity interest in Suspense 50
1436 404
Less: Fair value of identifiable net assets at acq'n:
Share capital 200 100
Share premium 120 50
Pre-acquisition retained earnings 950 100
-1,270 -250
166 154
Goodwill 320
Unrealized profit on inventories =

Mark-up=$260m x (25/125)=$52m

Murder Mystery Suspense

$'m $'m $'m
DEC 31, 2017 RETAINED EARNINGS 2,805 1,572 850
P/L gain on investment in Suspense (50 – 27) 23
Less: unrealised profit -52
Retained earnings at acq'n -950 -100
570 750
Group share of post acq'n ret'd earnings:
Mystery's (570 X 60%) 342
Suspense's (750 X 58%) 435
RETAINED EARNINGS 3,605
 Non-controlling interests
Mystery Suspense
$'m $'m
NCI at acquisition (W2) 536 210 536 210
NCI share of post acq'n ret'd earnings:
Mystery (570 X 40%) 228
Suspense (750 X 42%) 315
Less: NCI share of investment in Suspense (240 X 40%) -96
668 525
TOTAL NCI 1,193

Murder, Mystery and Suspense Co's

Consolidated Statement of Financial Position
Dec 31, 20x7

Non-Current Assets
PPE 4,738
Goodwill 320
Total NCA 5,058
Current Assets
Inventories 858
Trade receivables 1,114
Cash 451
Total CA 2,423
Total ASSETS 7,481

Equity
Ordinary Share Capital 500
Share Premium 250
Retained Earning 3,605
NCI(Non-Controlling Interest) 1,193
5,548
Current liabilities
Trade Payables 1,933
Total Liabilities & Equity 7,481