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    TINOTENDA MUCHEMWA
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    AB owns 75% of subsidiary JK. Their individual statements of financial position at 30 April 2007 are provided, along with notes about the acquisition, goodwill impairment, and relevant exchange rates. The consolidated statement of financial position is to be prepared combining AB and JK's assets, liabilities, and equity after accounting for non-controlling interests and foreign currency translation.

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    ias 21 practice

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    AB owns 75% of subsidiary JK. Their individual statements of financial position at 30 April 2007 are provided, along with notes about the acquisition, goodwill impairment, and relevant exchange rates. The consolidated statement of financial position is to be prepared combining AB and JK's assets, liabilities, and equity after accounting for non-controlling interests and foreign currency translation.

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    4 views1 page

    Ias 21 Practice

    Uploaded by

    TINOTENDA MUCHEMWA
    AB owns 75% of subsidiary JK. Their individual statements of financial position at 30 April 2007 are provided, along with notes about the acquisition, goodwill impairment, and relevant exchange rates. The consolidated statement of financial position is to be prepared combining AB and JK's assets, liabilities, and equity after accounting for non-controlling interests and foreign currency translation.

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    Statements of financial position at 30 April 2007:

    AB JK
    $m Fl m
    Tangible non-current assets 594 292
    Investment in JK 48 -
    Current assets 768 204
    1,410 496

    Share capital 120 64


    Share premium 100 40
    Retained earnings 720 190
    940 294
    Non-current liabilities 60 82
    Current liabilities 410 120
    1,410 496

    Notes:
    (i) The fair value of JK’s net assets at acquisition is the same as their carrying value
    except Land with fair value of F4 million in excess of its carrying amount .
    (ii) Goodwill in JK is to be impaired by (to be determined during lecture time)
    (iii) AB uses the partial goodwill method to account for non-controlling
    interests, and NCI does not include an amount for goodwill.
    (iv) The following exchange rates are relevant:
    1 May 2006 Fl 5.0 = $1
    Average for the year Fl 4.0 = $1
    30 April 2007 Fl 4.2 = $1

    AB owns 75% of JK which is located in a different country. The currency of this country is
    the Florin (Fl). AB acquired its shares in JK on 1 May 2006 for 240 million Florins when the
    retained earnings of JK were 160 million Florins. Their statements of financial position are
    shown above.

    Prepare a consolidated statement of financial position at 30 April 2007

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