闪电代写 -代写CS作业_CS代写_Finance代写_Economic代写_Statistics代写_代码代做_IT代写_加急帮助

Hello, dear friend, you can consult us at any time if you have any questions, add WeChat: daixieit

Financial and Management Accounting II

Lecture 1 – Tutorial Questions

Question 1. Explain the purposes and advantages and disadvantages in preparing consolidated financial statements for the parent company’s shareholders.

Question 2. Ice Plc. acquired 60% of the equity shares of Fire Ltd. on 31st December 20X1 and gained control. At 31st December 20X1, the statements of financial position for the two companies were as follows:

	Ice £m	Fire £m
Assets
Non-current assets
Property, plant and equipment	200	200
Investment in Fire	141
Current assets	100	140

Total Assets	441	340

Equity and Liabilities
Equity Shares	200	180
Retained earnings	161	40

Current Liabilities	80	120

Total Equity and Liabilities	441	340

Required:

1) Prepare a consolidated statement of financial position for ICE plc on 31st December 20X1 (using the proportionate method).

2) Calculate the Goodwill and Non-controlling interests (using the Full Method) for the consolidated statement of financial position for ICE Plc. on 31st December 20X1 if the fair value of the non-controlling interest at the date of acquisition was £92,000.

Note: The fair values of the identifiable net assets of Fire at the date of acquisition were the same as their book values.

Question 3. The parent company owns 75% of the ordinary shares of the subsidiary company. The income statements of the two companies for the year ended on 31st December as follows:

	Parent £m	Sub £m
Revenues	83	47
Cost of Sales	(36)	(19)
Gross Profit	47	28
Administration expenses	(14)	(7)
Distribution expenses	(21)	(10)
Operating profit	12	11
Interest payable	0	0
Profit before taxation	12	11
Taxation	(4)	(3)
Profit for the year	8	8