Reference no: EM133395789
Asset plc and Liability Limited prepare their financial statements to 31 December each year. Extracts from their 2018 financial statements are shown below:
Statements of Financial Position as at 31 December 2018
|
Asset plc
|
Liability Limited
|
|
£'000
|
£'000
|
|
Assets
|
|
|
|
Non-current assets
|
|
|
|
Property, plant and equipment
|
17,160
|
7,640
|
|
Investment in Liability Limited
|
_7,120
|
-
|
|
24,280
|
7,640
|
|
Current assets
|
|
|
|
Inventories
|
2,800
|
1,220
|
|
Trade receivables
|
1,960
|
1,400
|
|
Cash
|
__420
|
180
|
|
Total Assets
|
29,460
|
10,440
|
|
|
|
|
Equity and Liabilities
|
|
|
|
Share capital - £1 ordinary shares
|
12,000
|
5,000
|
|
Share premium
|
2,000
|
600
|
|
Retained earnings
|
12,880
|
1,840
|
|
26,880
|
7,440
|
|
Non-current Liabilities
|
|
|
|
5% debentures
|
-
|
2,000
|
|
|
|
|
Current Liabilities
|
|
|
|
Trade payables
|
2,580
|
1,000
|
|
Total Equity and Liabilities
|
29,460
|
10,440
|
Additional Information:
1. Asset plc purchased 70% of Liability Limited on 1 January 2018 when the balance on Liability Limited's retained earnings was £1,560,000.
2. Included in trade receivables of Asset plc are amounts owed by Liability Limited of £100,000. Liability Limited's payables include £100,000 due toAsset plc.
3. At the date of acquisition, the fair value of Liability Limited's property was £400,000 higher than the book value.
4. At the 31 December 2018, the inventory of Liability Limited includes goods it has purchased from Asset plc for £300,000. Asset plc sets its prices at cost plus 25%. One half of these goods are still in inventory at 31 December 2018.
5. Goodwill arising on the acquisition of Liability Limited has not been impaired.
6. It is the group policy to value non-controlling interest using the proportionate share of net assets method.
Requirement
Prepare the consolidated statement of financial position of Asset plc for the year ended 31 December 2018.
1.whatis the goodwill figure at the date of aquacition ?
2. ppe figure on 31december 2018?
3.what amount of unrealised profit in inventoryto be eliminated on 31 december 2018?
4.equity capital total om 31 december 2018?
5.post aquasition earningof liabilityon31/12/18?
6.non controlling interest at the date of aquisition ?