Reference no: EM132600561

H Limited acquired 70% of shares in S Limited on 01 January 2015 for R165, 000. At this date the retained earnings of the subsidiary was R 40,000.

At the date of acquisition H Limited considered the net assets of S ltd to be fairly valued in its statement of financial position, with the exception of land which was considered to be worth R50,000 more than its carrying amount. S Limited did not adjust the value of the land in its books. The non-controlling interests are recognised at their share of the net identifiable assets of the subsidiary.

The following are summarised Statements of Financial Position of H Limited and S Limited as at 31 December 2018:

                                                    H Limited                            S Limited

Assets                                  2,000,000                        200,000

Land at cost                            1,400,000                       140,000

Investment in S Ltd                       165,000                           0

Total current assets                          435,000                    60,000

Equity and Liabilities                      2,000,000                    200,000

Share Capital                           550,000                           110,000

Retained Earnings                         900,000                          70,000

Non- current Liabilities               550,000                           20,000

Required:

Question 1: Prepared the consolidated statement of financial position as at 31 December 2018.