ASSIGNMENT 1 COMPREHENSIVE PROBLEM DUE OCTOBER 8 AT 11:55 PM Below are the summarized statements of financial position for three companies as at March 31, 2020 Sandra Anthony $m Peter $m Şm Assets Non-current assets Property, plant & equipment 520 280 240 Investments 345 40 Nil 865 320 240 Current assets Inventory 142 160 120 Trade receivables 95 88 50 Cash and bank 22 1,110 245 270 10 590 180 420 Total assets Equity and liabilities Equity shares of $1 each Share premium Retained earnings 500 145 100 100 Nil Nil 130 230 260 260 |240 240 Non-current assets 10% loan notes 180 20 Nil Current liabilities 200 165 80 Total equity and liabilities 1,110 590 420 Notes: Peter is a public listed company that acquired the following investments: 1. Investment in Sandra. On April 1, 2018, Peter acquired 116 million shares in Sandra for an immediate cash payment of $210 million and issued at par one 10% $100 loan note for every 200 shares acquired. Sandra's retained earnings at the date of acquisition were $120 million. 2. Investment in Anthony On October 1, 2019, Peter acquired 30 million shares in Anthony in exchange for 75 million of its own shares. The stock market value of Peter's shares at the date of this share exchange was $1.60 each. Peter has not yet recorded the investment in Anthony. 3. Peter's other investments, and those of Sandra, are available-for-sale investments which are carried at their fair values as at March 31, 2019. The fair value of these investments on March 31, 2020, is $82 million and $37 million respectively.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter1: Accounting And The Financial Statements

Section: Chapter Questions

Problem 60APSA: Problem 1-60A Income Statement and Balance Sheet The following information for Rogers Enterprises is...

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Transcribed Image Text:4. Peter's policy is to value non-controlling interest at their values. The directors of Peter assessed the fair value of the non-controlling interest in Sandra at the date of acquisition to be $65 million. 5. There has been no impairment to goodwill or the value of the investment in Anthony. At the date of acquisition Sandra owned a recently built property that was carried at its (depreciated) construction cost of $62 million. The fair value of this property at the date of acquisition was $82 million and it had an estimated remaining life of 20 years. For many years Sandra has been selling some of its products under the brand name of "San". At the date of acquisition, the directors of Peter valued this brand at $25 million with a remaining life of 10 years. The brand is not included in Sandra's statement of financial position. The fair value of all other identifiable assets and liabilities of Sandra were equal to their carrying values at the date of its acquisition. 6. The inventory of Sandra on March 31, 2020, includes goods supplied by Peter for $56 million (at selling price from Peter) Peter adds a markup of 40% on cost when selling goods to Sandra. There are no intro group receivables or payables on March 31, 2020. 7. Anthony's profit is subject to seasonal variations. Its profit for the year ended March 31, 2020, was $100 million. $20 million of this profit was made from April 1. 2018 to September 30, 2019. 8. None of the companies have paid any dividends for many years. Required Prepare the consolidated statement of financial position of the Peter Group as at March 31, 2020 in accordance with IAS 1 PLEASE SHOW YOUR WORKINGS