a) Define and describe the following terms in the context of group accounting:
i) Parent
ii) Subsidiary
iii) Control
iv) Consolidated or group financial statements
v) Non-controlling interest
vi) Trade / simple investment
b) Identify subsidiaries within a group structure
c) Describe the components of and prepare a consolidated statement of financial position or extracts thereof including:
i) Fair value adjustments at acquisition on land and buildings (excluding depreciation adjustments)
ii) Fair value of consideration transferred from cash and shares (excluding deferred and contingent consideration)
iii) Elimination of intra-group trading balances (excluding cash and goods in transit)
iv) Removal of unrealised profit arising on intra-group trading
v) Acquisition of subsidiaries part way through the financial year
d) Calculate goodwill (excluding impairment of goodwill) using the full goodwill method only as follows:
Fair value of consideration X
Fair value of non-controlling interest X
Less fair value of net assets at acquisition (X)
Goodwill at acquisition X
e) Describe the components of and prepare a consolidated statement of profit or loss or extracts thereof including:
i) Elimination of intra-group trading balances (excluding cash and goods in transit)
ii) Removal of unrealised profit arising on intra-group trading
iii) Acquisition of subsidiaries part way through the financial year