CONSOLIDATION

Kaplan kit
Q 423 Pyramid

Pyramid W1 goodwill
Consolidated statement of financial position Consideration paid by parent
As at 31 March 20X2 share exchange
$'000 deferrred consideration
Assets NCI at fair value
Non current assets fair value of subsidiary net assets at acquisition
property, plant and equipment 69000 share capital 10000
Goodwill 7400 share premium 0
Equity investment 2800 retained earnings 18000
plant gain 3000
Current assets deferred tax liab exp -1000
Inventory 25300 goodwill
Trade receivables 13700
Bank 10000
W2a Consolidated reserves
total 128200 retained earnings
parent 30200
Share capital 25000 interest expense on de -640
share premium 17600 unrealised profit -500
consolidated reatined earnings 35780 investment gain 800
NCI 8480 sub post share 5920
35780
non current liabilities 21500
current liabilities 19840 W2b Sub post
retained earnings
total 128200 sub post 8000
dep on plant -600
7400
parent 80 5920
NCI 20% 1480

W3 NCI
NCI at fair value 7000
sub post share 1480
8480
 adjustments
Acquired subsidiary 2 years ago
24000 parent 80%
6400 NCI 20%
7000
ry net assets at acquisition dr investment in subsidiary 6400 this will be current liabilty
cr deferred liability 6400 since payment is to be made
on 1 april 20X2, which is
dr interest expense 640 after 1 year.
cr deferred liability 640
30000
7400
1- dr plant 3000 dr dep 600
cr gain 3000 cr plant 600
ted reserves (pre)
retained earnings
dr tax expense (pre) 1000
cr deferred tax liabilt 1000

2- dr goods in transit 1500 dr profit 500 w2a

cr inventor 500
dr payables 1700
dr inventory 1500
dr cash(bal) 1200
retained earnings cr receivbales 4400

3- dr asset 800
cr gain 800 w2a