ACCA SBR ^INT Syllabus D. Financial Statements of Groups entities - Comprehensive Examples - Step Acquisition - Notes ^{20 / 37}

SFP for YEAR 6

P acquired 30% S in year 1 for 60. It acquired another 30% in year 4 for 140

S’s reserves were 10 in year 1 and 60 in year 4.

FV of S’s NA in year 1 was 120 and in year 4 190. Difference is due to Land.

FV of NCI in year 4 was 90.

FV of 30% holding in Year 4 is 120.

P acquired a further 10% of S on the last day of year 6 for 50.

Show the Consolidated SFP at the end of year 6.

NCI @ Acquisition	90	(given)
NCI % of S’s post acquisition profits	136	(40% x 340)
Impairment	(0)
NCI on the SFP before further acquisition	226
Less further acquisition	(57) 226 x 10/40
NCI on the SFP after further acquisition	169

FV of consideration	(50)
Decrease in NCI	57
Difference - goes to Equity of the Parent	(7)

P	350
S	204	(60% x 340)
Impairment	(0)
Gain on Revaluing original 30%	60
Movement due to further acquisition	7
	621