ACCOUNTING: CONSOLIDATION Essay Example

Question 10(a)

Bigger Limited Co.

Consolidated Financial Statement

As at 30th June 2012

Amount($000)

Amount($000)

Amount($000)

Non current Assets

)wk2Goodwill (

0

0

Plant and Equipment

Current Assets

Accounts Receivable

Dividends Receivable

0

Inventory

Total Assets

Capital and Reserves

Ordinary Share Capital

0

)wk1Retained Earnings (

0

0

Liabilities

Accounts payable

Dividends Payable

0

Total Liabilities

Question 10 (b)

Bigger Limited Company

Consolidated Income Statement

For the year ended 30th June 2012

($000) 

Reported profit before adjustments

Less: Goodwill Impairment (wk2)

Reported profit before tax

Tax expense

Dividends Receivable

Dividends payable

0

Reported profit after tax

Reported Profit at the start

(wk1)Profit at the year end

Workings

wk2. Determination of goodwill on acquisition

Consideration given

100% of4000

Impairment @ 20%

Goodwill Realized

Question 11

Nat Limited Company

Consolidated Financial Statement

As at 30th June 2012

Non Current Assets

Plant and Equipment

)(wk2Investment in Associate

Current Assets

Dividends Receivable

Accounts Receivable

Capital and Reserves

Ordinary Share Capital

(wk1)Retained earnings

Long-term Liabilities

Current Liability

Accounts Payable

Retained EarningsWk1.

Nat retained earnings

Midget retained earn 20% of 750

Dividends receive able 20%of 600

. Investment in associatewk2

cost of investment

Add profit shared 20% 0f 750

Reference:

 Deegan, C (2010) Australian Financial Accounting 6th ed, McGraw-Hill, North Ryde, NSW