Solution To Step Acquisition
Solution To Step Acquisition
Teeny Group
Statement of financial position
As at June 30, 20x0
Rs. (000) Rs. (000)
Assets
Non-current assets
(15,000+16,000+600) 31,600
Goodwill (760+340) 1,100 32,700
Teeny Group
Statement of comprehensive income
As at June 30, 20x0
Teeny Tiny Adjustments Total
Rs. (000) Rs. (000) Rs. (000) Rs. (000)
Profit and loss account
Revenue 18,000 6,000 24000
Operating cost (12,000) 4,000 16000
Profit before tax 6,000 2,000 8000
Tax (1,500) (500) 2000
Profit after tax 4,500 1,500 6000
Group 5,550
NCI 450
Other comprehensive income
Revaluation surplus 200 200
Group 120
NCI 80
Teeny Group
Statement of changes in equity
As at June 30, 20x0
Answer Q-2
Teeny Group
Statement of financial position
As at June 30, 20x0
Rs. (000) Rs. (000)
Assets
Non-current assets
(15,000+16,000+600) 31,600
Goodwill (1,630+520) 2,150 33,750
Revaluation reserve
44,850
W4 W9
W-1 Group structure % %
Group 40 80
NCI 20
40 100
W-2 Cost of control account Rs. Rs.
Investment 18,000
Share capital 12,000
SRE-pre 5,480
15,480
Goodwill 520
W-3 NCI Goodwill
Fair value of NCI 6,000
Share of fair value of net assets
Share capital 3,000
SRE-pre 1,370
4,370
Goodwill 1,630
W-4 Non-controlling interest
Share capital 3,000
SRE-pre 1,370
SRE-post 150
Goodwill 1,630
Carried down 6,150
W-5 Consolidated retained earnings
Teeny retained earnings 24,500
Associate 1,500
Associate 80
Disposal 20
SRE-post 600 26,700
W-6 Investment in associate
Investment 7,400
Share of profit from post acquisition profit 1,500
Share of fair value gain 80
Gain on written down of investment 20
Fair value of investment 9,000
W-7 Subsidiary retained earnings
Pre Post
Retained earnings 6,250 750
Fair value gain 600 --
Group (3,750x.60)+(750x.80) 5,480 600
NCI (3750x.60)+ (750x.20) 1,370 150
Teeny Group
Statement of comprehensive income
As at June 30, 20x0
Teeny Tiny Adjustments Total
Rs. (000) Rs. (000) Rs. (000) Rs. (000)
Profit and loss account
Revenue 18,000 3,000 21,000
Operating cost (12,000) (2,000) (14,000)
Profit before tax 6,000 1,000 7,000
Share of profit from associate 300 300
Disposal gain 80 800
Tax (1,500) (250) (1,750)
Profit after tax 4,500 750 380 5,570
Group 5,420
NCI 150
Other comprehensive income
Revaluation surplus 80 80
Group 80
NCI
Teeny Group
Statement of changes in equity
As at June 30, 20x0
Revaluation reserve
45,000
W4 W9
W-1 Group structure % %
Group 40 80
NCI 20
40 100
W-2 Cost of control account Rs. Rs.
Investment 18,150
Share capital 12,000
SRE-pre 5,480
17,480
Goodwill 670
W-3 NCI Goodwill
Fair value of NCI 6,000
Share of fair value of net assets
Share capital 3,000
SRE-pre 1,370
4,370
Goodwill 1,630
W-4 Non-controlling interest
Share capital 3,000
SRE-pre 1,370
SRE-post 150
Goodwill 1,630
Carried down 6,150
W-5 Consolidated retained earnings
Teeny retained earnings 24,500
Disposal 1,750
SRE-post 600 26,850
W-6 Ordinary Investment
Cost of Investment 1,750
Gain on written down of investment 1,750
Fair value of investment 3,500
W-7 Subsidiary retained earnings
Pre Post
Retained earnings 6,250 750
Fair value gain 600 --
Group (3,750x.60)+(750x.80) 5,480 600
NCI (3750x.60)+ (750x.20) 1,370 150
Teeny Group
Statement of comprehensive income
As at June 30, 20x0
Teeny Tiny Adjustments Total
Rs. (000) Rs. (000) Rs. (000) Rs. (000)
Profit and loss account
Revenue 18,000 3,000 21,000
Operating cost (12,000) (2,000) (14,000)
Profit before tax 6,000 1,000 7,000
Disposal gain 1,750 1,750
Tax (1,500) (250) (1,750)
Profit after tax 4,500 750 7,000
Group 6,850
NCI 150
Teeny Group
Statement of changes in equity
As at June 30, 20x0