What amount should be recorded as non-controlling interest in the net assets of Mahlangu Limited in the consolidated statement of financial position of Mashego Limited at 30 April 2016?
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Q11
On 3 May 2016, Mashego Limited acquired 75% (and control) of Mahlangu Limited’s outstanding ordinary shares for R112 000. The fair value of the non-controlling interest was equal to a proportionate share of the book value of Mahlangu Limited’s net assets at the date of acquisition. The selected balance sheet data for the two companies as at 30 April 2016 are as follows:
|
|
Mashego |
Mahlangu |
|
|
Limited |
Limited |
|
|
R |
R |
|
Total assets |
504 000 |
216 000 |
|
Liabilities |
144 000 |
72 000 |
|
Ordinary shares |
120 000 |
60 000 |
|
|
240 000 |
84 000 |
|
Equity & liabilities |
504 000 |
216 000 |
What amount should be recorded as non-controlling interest in the net assets of Mahlangu Limited in the consolidated
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- Q5 On 3 May 2016, Mashego Limited acquired 75% (and control) of Mahlangu Limited’s outstanding ordinary shares for R112 000. The fair value of the non-controlling interest was equal to a proportionate share of the book value of Mahlangu Limited’s net assets at the date of acquisition. The selected balance sheet data for the two companies as at 30 April 2016 are as follows: Mashego Mahlangu Limited Limited R R Total assets 504 000 216 000 Liabilities 144 000 72 000 Ordinary shares 120 000 60 000 Retained earnings 240 000 84 000 Equity & liabilities 504 000 216 000 What amount should be recorded as investment in subsidiary in the separate statement of financial position for Mashego Limited at 30 April 2016? Select one: a. R108 000 b. R112 000 c. R144 000 d. R216 000On 1 July 2016, A Ltd acquired 80% of the issued shares of B Ltd for $190 000. At this date, the equity of B Ltd was: Share capital General reserve Retained earnings $ 100 000 50 000 60 000 At acquisition date . At 30 June 2018, the equity of B Ltd consisted of: Share capital General reserve Retained earnings $ 100 000 70 000 90 000 During the 2017–18 year B Ltd recorded a profit of $20 000. At 1 July 2016, the fair value of the non-controlling interest was $45 000 and A Ltd adopts the full goodwill method. Required: Prepare the acquisition analysis (without any consolidation entries) please answer complete and working noteQ25 On 1 June 2013, Sun Ltd acquired 75% interest (and control) over Savy Ltd by acquiring 570 000 of the issued ordinary shares of Savy Ltd. The consideration paid was settled in cash amounting to R810 000. On this date the retained earnings of Savy Ltd amounted to R125 000 and 760 000 ordinary shares worth R950 000. The Sun Ltd Group measures non-controlling interests in an acquiree at its proportional share of the aquiree’s identifiable net assets at acquisition date (partial goodwill method). On 31 December 2015, goodwill was tested for impairment and it was determined by the directors of Sun Ltd that the goodwill was impaired with R2 750 at the end of the current financial year. The amount that will be disclosed as goodwill in the consolidated statement of financial position of the Sun Ltd Group as at 31 December 2015, is_______. Select one: a. R1 000 b. RNIL c. R269 750 d. R3 750
- (i) On 01 January 2013, Gordon Plc acquired 75% of Brown Ltd for $300,000 when Brown`s share capital and reserves were $252,000. Prior to the acquisition, the net book value of Brown`s non-current assets was $90,000. Brown revalued its non-current assets immediately prior to the acquisition to fair value and included the revaluation in its statement of financial position. (ii) On 01 January 2015, Gordon acquired 20% of Boris Ltd for $72,000 when the fair value of Boris`s net assets were $42,000. (iii) Goodwill has been impaired in Brown by $77,700 and in Boris by $31,800 (iv) At the year end, Gordon Plc has inventory acquired from Brown and Boris. Brown had invoiced the inventory to Garden for $6,000 – the cost to Brown had been $1,200 and Boris had invoiced Gordon for $3,000 – the cost to Boris had been $1,800. REQUIRED (a) Prepare Gordon Plc`s Consolidated Statement of Financial Position as at 31 December 2019.Q) On 1 January 2017, P Ltd paid £540,000 to acquire 55% of the ordinary share capital of S Ltd. The equity of S Ltd on that date consisted of ordinary share capital of £300,000 and retained earnings of £250,000. Goodwill arising on consolidation has suffered an impairment loss of 30% between 1 January2017 and 31 December 2020. The goodwill figure which should be shown inthe consolidated statement of financial position at 31 December 2020 is: a) £71,250b) £166,250c) £100,000d) £550,000Glory Plc holds 10% investment in Adom Plc at GHC24,000 and accounts for it in line withIFRS 9. On 1 January 2018 Glory acquired a further 50% of Adom Plc’s ordinary shares at a cost ofGHC160,000. On 1 January 2018, the net assets of Adom Plc were assessed to have total value ofGHC 200,000, the NCI was fair valued at GHC100,000 and the 10% previously held was assessed tohave a fair value of GHC 26,000.Calculate the Goodwill arising from the acquisition of Adom PlcA GHC 86,000B GHC 66,000C GHC 100,000D GHC20,000
- Q4) Giant ltd acquired 80 percent share capital of Expert ltd. On July 2018 for a cost of $1,600,000. As at the date of acquistion, all the assets and liabilities of Expert ltd were fairly valued except a land that has a carrying value $150,000 less than the fair value. The recorded balance of equity of Expert ltd as at 1 July 2018 were as: Share capital $800,000 Retained earnings $200,000 General reserve $400,000 Total $1,400,000 Additional information: (i) The management of Giant ltd values non-controlling interest at the proportionate share of Expert ltd identifiable net assets. (ii) Expert ltd has a profit after tax of $200,000 for the year ended 30 June 2019. (iii) During the financial year to 30 June 2019, Expert ltd sold inventory to Giant ltd for a price of $120,000. The inventory costs Expert ltd $60,000 to produce. 25 percent of the inventory are still on the hand of Giant ltd as at 30 June 2019. (iv) During…On 1 June 2013, Sun Ltd acquired 75% interest (and control) over Savy Ltd by acquiring 570 000 of the issued ordinary shares of Savy Ltd. The consideration paid was settled in cash amounting to R810 000. On this date the retained earnings of Savy Ltd amounted to R125 000 and 760 000 ordinary shares worth R950 000. The Sun Ltd Group measures non-controlling interests in an acquiree at its proportional share of the aquiree’s identifiable net assets at acquisition date (partial goodwill method). Calculate the amount of goodwill. Select one: a. R3 750 b. R2 000 c. RNIL d. R272 500Maenetja Limited acquired 1000 shares in Manana Limited on 1 December 2014 at the fair value of R15 per share. Transaction costs amounted to R200. At the date of acquisition the company elected to recognize subsequent changes in the fair value of this investment in other comprehensive income (OCI). The company’s policy is to release any gains or losses resulting from these fair value adjustments to retained earnings when the shares are sold. On 31 December 2014 the market value of Manana Limited’s shares was R18. On 30 June 2015, 200 shares were sold for R19.50. The market value of the shares at 31 December 2015 was R14. What amount should be recorded as the closing amount on this investment
- Q17 Mokwena Limited acquired 48% investment in Masibi Limited at R100 000. At the date of acquisition, which is 31 March 2016, Masibi Limited’s statement of financial position showed the following balances: Non-current assets R692 000 Current assets R44 000 Non-current liabilities R268 000 Current liabilities R218 000 Mokwena Limited applies equity accounting for all its investments in associates and joint ventures. The financial year-end for Mokwena Limited is on 31 March of each year. Assuming that Mokwena Limited acquired the 48% in Masibi Limited at R125 000 instead of R100 000. What amount will be recorded as investment in associate in Mokwena Limited’s statement of financial position as at 31 March 2016? Select one: a. R125 000 b. R120 000 c. R250 000 d. R100 000Unicorn Ltd acquired 80% of the issued shares of Pegasus Ltd for $685,700 on 1 July 2020. The financial statements of Pegasus Ltd showed the following items of equity: Share capital $565,500 Retained earnings $247,400 At acquisition date all the identificable assets and liabilities of Pegasus Ltd were recorded at amounts equal to fair value except for the following: Carrying amount Fair value Land $395,900 $424,100 During the year end 30 June 2021, Pegasus Ltd recorded at profit of $84,800. The tax rate is 30%. Required: Show the acquisition analysis as at 1 July 2020 and prepare the consolidated worksheet entries at 30 June 2021 for Unicorn Ltd assuming that it adopts the partial goodwill method.Madari Ltd purchased 100% of the shares of Concerto Ltd on 1 July 2020 for $70,000. On the date of acquisition, the equity of the two entities was as follows: Madari Ltd($) Concerto Ltd ($) General Reserve 25,000 5,500 Retained Earnings 4,500 3,300 Share Capital 60,000 38,000 At 1 July 2020, all of the identifiable assets and liabilities of Concerto Ltd were recorded at fair value except for the following: Carrying Amount ($) Fair Value ($) Inventory 3,000 4,500 Plant and Equipment 60,000 65,000 The plant and equipment had a further 5-year useful life. Any valuation adjustments are made on…
