p acquired 80 of s on 1 december 2012 paying n 4 25 in cash per share at this stage 4522824

P acquired 80% of S on 1 December 2012 paying N$4.25 in cash per share. At this stage the balance on S’s retained earnings were N$ 870 000. On March 2015 P acquired 30% of A’s ordinary shares. The consideration was settled by share exchange of 4 new shares in P for every 3 shares acquired in A. The share price of P at the date of acquisition was N$ 5.00. P has not yet recorded the acquisition of A in its booksThe Statement of Financial Position for three companies as at 30 November 2015 is as followsP S A000 000 000Non-current AssetsProperty 1300 850 900Plant & Equipment 450 210 150Investment 1825 0 0Current AssetsInventory 550 230 200Receivables 300 340 400Cash 120 50 1404545 1680 1790Share capital N$1 1800 500 250Share premium 250 80 0Retained Earnings 1145 400 12003195 980 1450Non – current Liabilities10% Loan notes 500 300 0Current LiabilitiesTrade Payables 520 330 250Income Tax 330 70 904545 1680 1790 TUTORIAL LETTER SEMESTER 2/2016 FINANCIAL ACCOUNTING 320 GFA712S17The following information is relevant•As at December 2012, plant in the books of S was determined to have a fair value of N$ 50 000 in excess of its carrying value. The plant had a remaining life of 5 years at this time• During the year, S sold goods to P for N$ 400 000 at a mark-up of 25%. P had a quarter of these goods still in inventory at the year end• In September A Sold goods to P for N$ 150 000. These goods had cost A N$ 100 000. P had N$90000( at cost to P) in inventory at the year –end• AS a result of the above intercompany sales, P’s books showed N$50 000 and N$20000 as owing to S and A respectively at the year-end. These balances agreed with the amounts recorded in S’s and A’s books• Non –controlling interests are measured using the proportion of net assets method. Goodwill is to be impaired by 30% at the reporting date. An impairment review found the investment in associate was to be impaired by N$ 15000 at the year-end• A ‘s profit after tax for the year is N$ 600,000Required:Prepare the Consolidated Statement of Financial Position as at 30 November 2015

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