Question

735 225 Question 3 The following are the statements of financial position of Gold Lad, Silver Led and Bronze Led as at 31 July 2018: Statement of Financial Position as at 31st July 2018 Assets Gold Ltd Silver Lid Bronze Lid Non-current assets €'000 000 €"000 Property, plant and equipment 15.525 14,280 24,300 Investment in Silver Lid 6,175 Investment in Bronze Ltd 2.425 29.125 14. 20 2 4,300 Current assets Inventories 2.400 1,130 1.170 Trade receivables 1,375 900 Debenture interest receivable 80 Bank 4,080 2.105 1.935 Total assets 33,205 16,385 26,235 Equity and Liabilities Equity Ordinary share capital El 14,750 5,000 13,050 Share premium 1,500 800 2.250 Retained earnings 13.020 7,890 9.660 Total equity 29,270 13,690 24,960 Non-current liabilities 10% debenture 2.000 1.000 Current Liabilities Trade payables 1.735 1.595 Debenture interest payable 200 Taxation 1,935 1.695 1,275 Total equity and liabilities 33,205 16,385 26,235 1,275 100 Additional Information: (a) Gold Ltd acquired 70% of the ordinary shares of Silver Ltd and 80% of their 10% debentures on 1" July 2015 for € 6,175,000. The retained earnings and share premium of Silver Lid were € 2,500,000 and € 800,000 respectively on the date of acquisition (b) Gold Ltd acquired 15% of the ordinary shares of Bronze Ltd on 1" September 2015 when the retained earnings and share premium of Bronze Ltd were € 2,600,000 and € 1,500,000 respectively. (C) Non-controlling interests at 1 July 2015 are measured at their proportionate share of net assets of Silver Ltd. (d) Silver Ltd approved an ordinary dividend for the year ended 31 July 2018 of € 50,000, however, this has not been reflected in the above financial statements. Prepoic Requirement: the Prepoic the Staten consoliclated consoliclated Stotement of feconciol Position for Gold group as of 31st of July 2018 showing the following acroures • Cost of Control . Non controlling interests • Cosatthet Reserves Consolidated

Answer 1

Gold Limited
Date of Acquisition	1st July, 2015
	Silver Limited
Total Share	5000
Gold Limited	3500	Gold Limited Holds 70% of Equity Share Capital of Silver Limited hence will be classified as its subsidiary co
Minority Interest	1500
	Bronze Limited
Total Shares	13050
Gold Limited hold 15% of shares of Bronze which is less than 50% ie. Its is not a subsidiary company
Cost of Control
	Silver Limited
	Gold Limited	Non Controlling Interest
Share Capital	3500	1500
Retained Earnings	1750	750
Share Premium	560	240
	5810	2490
Add: Profit		1602
Less : Paid	5375
Goodwill / (Capital Reserve)	-435	4092
		Non Controlling Interest
Total Consideration includes 800 for Debenture
Consolidated Reserve of Gold Limited
	Retained Earnings
Balance Gold Limited	13020
Add: Dividend Income	35
Add: Share of Silver (WN -1)	3738
Balance Gold Limited (Consolidated)	16793
Consolidated Balance Sheet of Gold Limited as on 31St July 2018
Particulars
Assets
Non-current Asstes		('000)
Property Plant & Equipment		29805
Investment inBronze Limited		7425
Current Assets
Inventories		3530
Trade Receivable		2275
Debenture Interest Receivable		0
Bank		300
Total Assets		43335
Equity & Liabilities
Ordinary Shares		14750
Share Premium		1500
Retained Earnings		16793
Capital Reserve		435
Non Controlling Interest		4092
Non Current Liabilities
10% Debenture		2200
Current Liabilities
Trade Payable		3330
Debenture Interest Payable		220
Dividend Payable		15
		43335