Below are the statements of financial position of three companies as at 31 December 20X9. ...

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Below are the statements of financial position of three companies as at 31 December 20X9.  	Bauble		Jewel		Gem 	Co		Co		Co 	$’000		$’000		$’000 Non-current assets					 Property, plant and equipment	720	60	70 Investments in group companies	185	100		– 					 	905	160	70 Current assets	175	95	90 					 	1,080	255	160 Equity					 					 Share capital – $1 ordinary shares	400	100	50 Retained earnings	560	90	65 					 	960	190	115 Current liabilities	120	65	45 					 	1,080	255	160 					  You are also given the following information:  	Bauble Co acquired 60% of the share capital of Jewel Co on 1 January 20X2 and 10% of Gem on 1 January 20X3. The cost of the combinations were $142,000 and $43,000 respectively. Jewel Co acquired 70% of the share capital of Gem Co on 1 January 20X3.   	The retained earnings balances of Jewel Co and Gem Co were:  	1 January 20X2	1 January 20X3 	$000	$000 Jewel Co	45	60 Gem Co	30	40  	No impairment loss adjustments have been necessary to date.  	It is the group's policy to value the non-controlling interest at acquisition at its proportionate share of the fair value of the subsidiary's identifiable net assets.  Required  	Prepare the consolidated statement of financial position for Bauble Co and its subsidiaries as at 31 December 20X9.  	Calculate the total goodwill arising on acquisition if Bauble Co had acquired its investments in Jewel and Gem on 1 January 20X3 at a cost of $142,000 and $43,000 respectively and Jewel Co had acquired its investment in Gem Co on 1 January 20X2.

Robert · Accepted Answer

BAUBLE GROUP 
 
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 20X9 
 

Non current assets  
Property, plant and equipment (720 + 60 + 70)  
Goodwill (W2)
Current assets (175 + 95 + 90)
Equity attributable to owners of the parent  
Share capital – $1 ordinary shares  
Retained earnings (W4)
Non-controlling interest (W3) 

Current liabilities (120 + 65 + 45) 

Workings 
 
 Group structure 
Bauble  
 
 
 
 
 

$’000
850  
111   
961   
360   
1,321  
 
400  
600   
1,000  
91   
1,091  
 
230   
1,

Below are the statements of financial position of three companies as at 31 December 20X9. Bauble Jewel Gem Co Co Co $’000 $’000 $’000 Non-current assets Property, plant and equipment 720 60 70...

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