Reference no: EM132743396
Question - Rose Ltd acquires 100 per cent of the shares of Banksia Ltd on 1 July 2018 for a consideration of $730 000. The share capital and reserves of Banksia Ltd at the date of acquisition are:
Share capital $200 000
Retained earnings $100 000
Revaluation surplus$150 000
$450 000
There are no transactions between the entities and all assets are fairly valued at the date of acquisition. The financial statements of Rose Ltd and Banksia Ltd at 30 June 2019 (one year after acquisition) are:
Reconciliation of opening and closing retained earnings. Rose Ltd. Banksia Ltd ($000) ($000)
Profit before tax 300 100
Tax (100) (30)
Profit after tax 200 70
Retained earnings- 1 July 2018 200 100
Retained earnings- 30 June 2019 400 170
Statements of financial positions Shareholders' equity
Retained earnings 400 170
Share capital 1 000 200
Revaluation surplus 300 200
Current liabilities
Accounts payable 60 40
Non-current liabilities
Loans 600 250
2 360 860
Current assets
Cash 80 45
Accounts receivable 350 95
Non-current assets
Land 200 120
Plant 1 000 600
Investment in Banksia Ltd 730 -
2 360 860
REQUIRED - Prepare the consolidated financial statements for Rose Ltd and Grevillea Ltd as at 30June 2019?