2 ADVANCED FINANCIAL ACCOUNTING. air and book values of idonifiable not assets os at date of acquision Fair vale of non contrng ines of ser. Aditionat information: ‘The under valued inventory of Silver was disposed as follows: (On 1 July 2086, Silver Co transferred the fllowing taventory to P Co: inva uw 323 GROUP REPORTING IV: CONSOLIDATION unt (0a 1 january 2035, Silver Co borrewed a long-term loan of $20,000,000 from an unrelated bank. Prom the proceeds ofthe external loan Silver Co estended to P Co ¢ loan of $10,000,000 on 1 July 2035 Shouse, and $2,000,000 to finance the purchase of inventories. The construction ofthe 2386 pa 3085 pa Apply ataxrate of 20% on all appropriate adjustments. Recogule tx effets on far value adjustments, © Companies recognize inpalrment losses, if any, at the Gnaacisl year-end. Regutred: Prepare consolidation adjusting enti for the year ended 31 December 20:6. ‘perform an anakytcal check on the balance of non-contralling Interests as et 31 December 20x6. ‘erform an enalytiel check on the balance of consolidated retained earnings as et 31 December 20:6. ltagroup transfers aquired + controling intrest in 50% of X Co, The fi elevant deals are chown below. All gures are in dollars,ACCOUNTING FOR THE EFFECTS OF CHANGES IN FORFIGN EXCHANGE RATES 781 ADVANCED FINANCIAL ACCOUNTING gee ean ‘Co ¥ is an 80%-owned subsidlary of USCo. The functional currency of Co Y is the Singapo; 1e US dollar The financial imements kept in Singapore d Calentste the tensation gains/iosses Zor goodwill and undervalued inventory. Prepare the consolidation journal entries. E fe7 Gang of fcionl corey Btn the fst year of incomprntion (2013), Co A fncnalcurency was the US dalla. Co Ab connie tvgonment caged in 2014 and nee fnctosl caency fom 13 Septenber 2014 the Sogepse doll Salers see Boones oo ie prof befoe t