On 1st July, 2018 Nile Ltd acquired 70% of the share capital of Amazon Ltd for...

On 1st July, 2018 Nile Ltd acquired 70% of the share capital of Amazon Ltd for $80,000,000. The equity of Amazon Ltd as at the acquisition date was: Share Capital $ 52,000,000 General Reserve $ 20,000,000 Retained Earnings $ 10,000,000 All assets of Amazon Ltd were recorded at fair value on acquisition, except for one property which had a fair value which was $2,000,000 lower than its’ carrying amount. The cost of the property was $20,000,000 with accumulated depreciation of $12,000,000. Ignore Taxes. Required: (a) Complete the worksheet below using the NET method. (4.5 marks) (b) Prepare the consolidation adjustments and eliminations entries and recognise the NCI in the pre-acquisition equity of Amazon Ltd, assuming that the NCI was measured at the proportionate share of the acquiree’s identifiable net assets. (6.5 marks) Elimination of Investment in Amazon Ltd Amazon Ltd (S) $,000 Nile Ltd (70% of Amazon) (P) $,000 30% NCI $,000 Fair Value of consideration transferred Less: FV of identifiable assets acquired & liabilities assumed Share capital on acquisition date 52,000 General reserve-acquisition date 20,000 Retained earnings-acquisition date 10,000 Fair value adjustment Goodwill on acquisition Non-controlling interest

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ekkarill92 answered 1 year ago

(Note this question is from the Week 10 Tutorial) On 1st July, 2018 Nile Ltd acquired...

(Note this question is from the Week 10 Tutorial) On 1st July, 2018 Nile Ltd acquired 70% of the share capital of Amazon Ltd for $80,000,000. The equity of Amazon Ltd as at the acquisition date was: Share Capital $ 52,000,000 General Reserve $ 20,000,000 Retained Earnings $ 10,000,000 All assets of Amazon Ltd were recorded at fair value on acquisition, except for one property which had a fair value which was $2,000,000 lower than its’ carrying amount. The cost...

On 1st July 20X7 Parent Ltd acquired all of the share capital of Controlled Ltd for...

On 1st July 20X7 Parent Ltd acquired all of the share capital of Controlled Ltd for $487,500. As that date equity of Controlled Ltd was: Share Capital $300,000 General Reserve $60,000 Retained Earnings $70,000 Consolidation worksheet 30 June 20X2 Dr./Cr Parent Ltd Controlled Ltd Elimination Consolidated Statement Dr Cr Sales Cr 4,000,000 2,200,000 Cost of goods sold Dr 2,300,000 1,000,000 Gross profit Cr 1,700,000 1,200,000 Dividend from Controlled Ltd Cr 30,000 Profit from sale of plant Cr 6,000 Interest...

1 On 1st July 20X1 Baker Ltd acquired all the share capital of Portland Ltd for...

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Juan Ltd acquired 80 percent share capital of Beach Ltd. On 1 July 2018 for a...

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On 1 July 2018, Sunflower Ltd acquired 90% of the share capital to gain control of...

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On 1 July 2018, River Ltd acquired 90% of the share capital to gain control of...

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Question 4 Giant Ltd acquired 80 percent share capital of Expert Ltd. On 1 July 2018...

Question 4 Giant Ltd acquired 80 percent share capital of Expert Ltd. On 1 July 2018 for a cost of $1,600,000. As at the date of acquisition, all assets and liabilities of Expert Ltd were fairly valued except a land that has a carrying value $150,000 less than the fair value. The recorded balance of equity of Expert Ltd as at 1 July 2018 were as: Share capital $800,000 Retained earnings $200,000 General Reserve $400,000 Total $1,400,000 Additional information: ...

On 1 July 2021, Atlantic Ltd acquired 100% of the share capital of Pacific Ltd for...

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On 1 July 2016 Tim Ltd acquired all the share capital of Tam Ltd and goodwill...

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