P2 Q1

Consolidated Statement of Financial Position for the Bubble Group as at 31st October 2015
Non-Current Assets
Goodwill (W3)
Property, Plant & Equipment (280+105+(390/9.5)+6+2-7+6.5-0.09+1.48-0.5)
Financial Assets (12+9+(98/9.5)
Current Assets
Inventories (20+12+(16/9.5)
Trade Receivables (30+25+(36/9.5)
Cash & Equivilents (14+11+(90/9.5)
Total Assets
Equity
Share Capital (80
Retained Earnings (W5)
Other Compinents of Equity (W6)
Transalation Reserve (W7)
Non-Controlling Interest (W4)
Non-Current Assets
Sundry (95+7+(110/9.5)+1-(7.51/9.5)+2
26.95
434.44
31.32
492.71
33.68
58.79
34.47
126.95
619.65
80.00
245.35
43.73
-6.44
53.33
415.97
115.79
Current Assets
Sundry (67+19+(18/9.5)
87.89
Total Equity and Liabilities
619.65
Working 1 - Group Structure

Bubble owns 80% in Salt for two years
Bubble also owns 60% in Tyslar for one year
Working 2 - Net Assets
Salt - $
Share Capital
Retained Earnings
Other Componets
FV - Land
Continget Liability
Tyslar - Dinars
Share Capital
Retained Earnings
Gain on Loan (W8)
At Acquistion
50.00
56.00
8.00
6.00
-1.00
119.00
At Reporting
50.00
74.00
12.00
6.00
-1.00
141.00
Movement
18.00
4.00
-
At Acquistion
200.00
258.00
At Reporting
210.00
292.00
7.51
Movement
34.00
7.51
458.00
509.51
41.51
Opening Net assets (458/8)

Movement (41.51/8.5)
Loss on Translation (Bal Fig)
Closing Net assets (509.51/9.5)
22.00
57.25
4.88
-8.50
53.63
Working 3 - Goodwill
Salt - $
Consideration
Plus FV of NCI
Less: FV of net assets at acquistion
Tyslar - Dinars
Consideration (46*8)
Plus: FV of NCI
Less: FV of Net Assets
Goodwill
Impairment (20%)
Impaired Goodwill
Dollars - $
Opening Goodwill (130/8)
Goodwill Impairment (26/8.5)
Loss on Translation (Bal Fig)
Closing Goodwill (104/9.5)
110.00
25.00
-119.00
16.00
368.00
220.00
-458.00
130.00
-26.00
104.00
16.25
-3.06
-2.24
10.95
Working 4 - NCI
Salt
FA of NCI at acquistion
Share of Movement (22*0.2)
Tyslar
FV of NCI (220/8)
Share of Movement (4.88*0.4))
Share of Goodwill Impairment (3.06*0.4)
Share of loss on translation of goodwill (2.24*0.4)
Share of loss on translation of NA (8.50*0.4)
25.00
4.40
29.40
27.50
1.95
-1.22
-0.90
-3.40
23.93
Working 5 - Retained Earnings

Parent
Share of Movement in Salt (18*0.8)
Share of Movement in Tyslar (4.88*0.6)
Share of Goodwill Impairment (3.06*0.6)
Loss on Disposal (W9)
Depreciation of Buidling (W9)
Relocation costs (W9)
Reversal of pension contributions (W10)
Pension service cost (5+1.05) (W10)
Gain on Employees leaving
230.00
14.40
2.93
-1.84
-0.50
-0.09
-0.50
6.00
-6.05
1.00
245.35
Working 6 - Other Components of Equity

Parent
Share of Movement in Salt (4*0.8)
Revaluation of Land (W9)
Revaluation of Builidng (W9)
Pension Remeasurement componenet (W10)
40.00
3.20
2.00
1.48
-2.95
43.73
Working 7 - Translation Reserve

Share of loss on transaltion of goodwill (2.24*0.6)
Share of loss on translation of NA (8.50*0.6)
-1.34
-5.10
-6.44
Working 8 - Inter Company Loan

Initial Recognition
Dr Bank (10*9)
Cr Loan
Payment
Dr Loan
Cr Bank
90.00
90.00
50.00
50.00
Therefore Carring value in the financial statements is (90-50) 40m Dinars

The carrying value translated to dollars is (40/9.5) $4.21m
The the carring value in the parents accounts is (10-5) 5m
As the Tyslar needs to pay less back in total as at the year end the gain on the loan is $0.79m
However, this is in dollars and needs to be converted back to Dinars (0.79*9.5)= 7.51m Dinars
Working 9 - Overseas Property

Fair value of building aquired (58.5/9)
6.50
Land
Carring value of $5m but FV of $7m
Dr Property Plant & Equipment
Cr OCE - Revalution Reserve
2.00
2.00
Then Disposed of
Dr PPE with new building
Cr PPE - Land Disposal
Dr Loss of Disposal (w5)
6.50
7.00
0.50
Depreciation - 6 Months only

Carring value = $6.50m with 35 year life
Depreciation for the period (6.5/35)*6/12
Dr W5
Cr PPE
0.09
0.09
0.09
Revaluation at Year End

Fair value = (75/9.5)
Carring value (6.5-0.09)
Revaluation
7.89
6.41
1.48
Relocation costs - shouldn't be capitalised

Dr W5
Cr PPE
0.50
0.50
Working 10 - Pension
Firstly, reverse the incorrect expense
Dr Pension
Cr w5
6.00
6.00
Opening pension net obligation

Contributions made
Service cost
Net interest component (using average rate 7%) (15*0.07)
Gain on employees leaving
15.00
-6.00
5.00
1.05
-1.00
14.05
Remersuremnet Componenet (bal fig)

Closing net obligation
2.95
17.00
Balancing entry - Cr Non-Current Liabilities with 2

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Consolidated Statement of Financial Position for the Bubble Group as at 31st October 2015

Total Equity and Liabilities

Working 1 - Group Structure

Opening Net assets (458/8)

Working 5 - Retained Earnings

Working 6 - Other Components of Equity

Working 7 - Translation Reserve

Working 8 - Inter Company Loan

Therefore Carring value in the financial statements is (90-50) 40m Dinars

Working 9 - Overseas Property

Depreciation - 6 Months only

Revaluation at Year End

Relocation costs - shouldn't be capitalised

Opening pension net obligation

Remersuremnet Componenet (bal fig)

Balancing entry - Cr Non-Current Liabilities with 2

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