On 1 January 2015, Jarndyce acquired 80% of the ordinary share capital of Skimpole for USD576,000.The statements of financial position of the two companies at 31 December 2015 were as follows: Jarndyce Skimpole USD000 USD000 Net assets 468 432 Investment in Skimpole 576 — ——— ——— 1,044 432 ——— ——— Issued share capital 720 180 Retained earnings At 31 December 2014 144 108 Profit for 2015 180 144 ——— ——— 1,044 432 ——— ——— Non-controlling interest is valued at fair value on acquisition, which was USD140,000. There has been no impairment of goodwill since the acquisition took place.What amount of goodwill should be included in the consolidated statement of financial position of Jarndyce as at 31 December 2015?

1 .Which of the following statements regarding group accounting is/are correct?(1) Only the group’s share of the assets of a subsidiary is included in the consolidated statement of financial position(2) Only the group’s share of the net assets of an associate is reflected in the consolidated statement of financial position(3) Share capital in a consolidated statement of financial position includes the share capital of both the parent and the subsidiary

A 1 only B 2 only C 3 only D None of the statements

题型: 单选题 提问时间: 2021-08-24

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2 .During the last financial year, Orius acquired 44% of the issued share capital of Eerus. Under the terms of the acquisition, the finance director of Orius was appointed to the board of directors of Eerus.How should Orius account for its interest in Eerus in the consolidated financial statements?

A As a subsidiary, using acquisition accounting B As a subsidiary, using equity accounting C As an associate, using acquisition accounting D As an associate, using equity accounting

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3 .At 1 January Barley acquired 100% of the share capital of Corn for USD1,400,000. At that date the share capital of Corn consisted of 600,000 ordinary shares of 50c each and its reserves were USD50,000.On acquisition Corn had some assets whose carrying amount was USD230,000 but the fair value was USD250,000.What was goodwill on acquisition?

A USD730,000 B USD750,000 C USD1,030,000 D USD1,050,000

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4 .Gonzo acquired 80% of the share capital of Bamboo a number of years ago. Bamboo has issued 200,000 USD1 shares which had a market price of USD3.10 on acquisition. The carrying amount of Bamboo’s net assets today is USD650,000, this is USD50,000 higher than it was on acquisition.What amount should be shown for non-controlling interest in Gonzo’s consolidated statement of financial position today?

A USD120,000 B USD124,000 C USD130,000 D USD134,000

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5 .Which of the following statements is/are correct?(1) Dissimilar activities of a parent company and a subsidiary can be a reason for non-consolidation of the subsidiary.(2) A non-controlling interest must be presented in a consolidated statement of financial position as a separate line item within equity.

A 1 only B 2 only C Both 1 and 2 D Neither 1 nor 2

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7 .On 1 January 2015, Jarndyce acquired 80% of the ordinary share capital of Skimpole for USD576,000.The statements of financial position of the two companies at 31 December 2015 were as follows: Jarndyce Skimpole USD000 USD000 Net assets 468 432 Investment in Skimpole 576 — ——— ——— 1,044 432 ——— ——— Issued share capital 720 180 Retained earnings At 31 December 2014 144 108 Profit for 2015 180 144 ——— ——— 1,044 432 ——— ——— Non-controlling interest is valued at fair value on acquisition, which was USD140,000. There has been no impairment of goodwill since the acquisition took place.What is the non-controlling interest in the consolidated statement of financial position of Jarndyce as at 31 December 2015?

A USD86,400 B USD140,000 C USD168,800 D USD201,600

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8 .Venus acquired 75% of Mercury’s 100,000 USD1 ordinary share capital on 1 November 2014. The consideration consisted of USD2 cash per share and 1 share in Venus for every 1 share acquired in Mercury. Venus shares have a nominal value of USD1 and a fair value of USD1.75. The fair value of the non-controlling interest was USD82,000 and the fair value of net assets acquired was USD215,500.What should be recorded as goodwill on acquisition of Venus in the consolidated financial statements?

A USD16,500 B USD63,375 C USD91,500 D USD147,750

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9 .On 30 June 2011 Petra acquired 90% of the share capital of Sabu. The non-controlling interest had a fair value of USD450,000.Extracts from the statements of financial position of Sabu at 30 June 2011 and 30 June 2015 are shown below: 30 June 2011 30 June 2015 USD USD Ordinary share capital 800,000 800,000 Share premium account 200,000 200,000 Retained earnings 3,200,000 4,000,000 What figure for non-controlling interest should appear in the consolidated statement of financial position as at 30 June 2015?

A USD420,000 B USD450,000 C USD500,000 D USD530,000

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10 .On 1 April 2010, Woolwich paid USD816,000 for 80% of Malta’s USD408,000 share capital. Malta’s retained earnings at that date were USD476,000. At 31 March 2016 the retained earnings of the companies are: USD000 Woolwich 1,224 Malta 680 Woolwich’s inventory includes goods purchased from Malta for USD18,000. Malta makes a profit at 20% on the cost of all goods sold to Woolwich.What are the retained earnings in the consolidated statement of financial position of Woolwich as at 31 March 2016?

A USD1,384,320 B USD1,384,800 C USD1,387,200 D USD1,439,200

题型: 单选题 提问时间: 2021-08-24

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