Question 1
Redcliff Ltd acquired the entire share capital of ABC Ltd for $18,000 cash on 31 December 20X4. The balance sheets of the two companies as at that date were as follows:
Required: Prepare the consolidated balance sheet of Redcliff Ltd and its subsidiary as at 31 December 20X4.
Question 2
Based on the information provided below, prepare appropriate consolidation journal entries for possible account adjustment or elimination.
Reference appropriate accounting standards to explain the approach which needs to be taken for the adjusting journals.
Parent paid $110 000 on 30 June for all the shares of Subsidiary, whose equity at that date is share capital $72 000 and retained profits $28 000. However, the assets of Subsidiary are not all recorded at their fair value. Assume that all companies adopt the revaluation model under AASB 116. The discrepancies are:
Question 3
A substitution elimination recognises consolidation goodwill of $60 000 at control date 1 January 20X2. Goodwill impairment recognised in the following year is below:
Required:
a) Record the eliminations for goodwill and its impairment at 31 December 20X2, 20X3 and 20X4 into general journal.
b) Record the eliminations of the goodwill and its impairment, if any, that are necessary 10 years after the control date, assuming no further impairment has been recognized.
Question 4
Non-controlling interest (NCI) is the ownership p interest of those shareholders who hold shares in a subsidiary that are not owned by the immediate parent or the other group members.
Discuss the implication of reporting NCI as a separate item of owner’s equity.
Question 5
Compare and contrast the two (2) different consolidation processes of serial and single consolidation techniques when indirect ownership interests exist.
The post HA2032-Corporate And Financial Accounting appeared first on My Assignment Online.