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    Highveldt - A

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    Marie Xavier - Felix
    The consolidated financial position of Highveldt Group and its subsidiary Samson as of March 31, 20X5 is presented. Key figures include consolidated total assets of $1,188.5 million, consisting of non-current assets of $760 million and current assets of $268 million. Total equity is $891.5 million, with non-controlling interests of $97.5 million. Consolidated non-current liabilities are $0 million and current liabilities are $297 million.

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    Highveldt - A

    Uploaded by

    Marie Xavier - Felix
    28 views3 pages
    The consolidated financial position of Highveldt Group and its subsidiary Samson as of March 31, 20X5 is presented. Key figures include consolidated total assets of $1,188.5 million, consisting of non-current assets of $760 million and current assets of $268 million. Total equity is $891.5 million, with non-controlling interests of $97.5 million. Consolidated non-current liabilities are $0 million and current liabilities are $297 million.

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    The consolidated financial position of Highveldt Group and its subsidiary Samson as of March 31, 20X5 is presented. Key figures include consolidated total assets of $1,188.5 million, consisting of non-current assets of $760 million and current assets of $268 million. Total equity is $891.5 million, with non-controlling interests of $97.5 million. Consolidated non-current liabilities are $0 million and current liabilities are $297 million.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    28 views3 pages

    Highveldt - A

    Uploaded by

    Marie Xavier - Felix
    The consolidated financial position of Highveldt Group and its subsidiary Samson as of March 31, 20X5 is presented. Key figures include consolidated total assets of $1,188.5 million, consisting of non-current assets of $760 million and current assets of $268 million. Total equity is $891.5 million, with non-controlling interests of $97.5 million. Consolidated non-current liabilities are $0 million and current liabilities are $297 million.

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    Solution – Highveldt

    The consolidated statement of financial position for Highveldt Group as at 31 March 20X5 is as
    follows:
    Highveldt Samson Consolidated
    $’million $’million $’million Working

    Tangible non-current assets 420 320 760 1


    Purchased goodwill - - 74.5 2
    Brand asset - - 36 3
    Investments 300 20 50 4
    720 340 920.5
    Current assets 133 131 268 5
    Total assets 853 471 1,188.5

    Equity and liabilities:


    Ordinary shares of $1 each 270 80 270
    Reserves:
    Share premium 80 40 80
    Revaluation reserve 45 - 45
    Retained earnings 350 210 399 6
    745 330 794
    Non-controlling interest - - 97.5 7
    Total equity 745 330 891.5
    Non-current liabilities
    10% intercompany loan - 60 - 8
    Current liabilities 108 81 297 9
    853 471 1,188.5

    Working

    1. The consolidated tangible non-current assets is calculated as follows:

    $’million
    Tangible non-current assets of H 420
    Tangible non-current assets of S 320
    740
    Fair value adjustment at acquisition on 1 April 20X4 20
    760

    2. This example measures non-controlling interest at the proportion of net assets. The purchased
    goodwill is calculated as below:
    $’ million
    Fair value of consideration
    Cash consideration (80 million x 75% x $3.50) 210
    Deferred consideration ($108 million/1.08) 100
    310
    Non-controlling interest ($314 million x 25%) 78.5
    388.5
    Fair value of Identifiable net assets of Entity S 314
    Purchased Goodwill as at acquisition 74.5

    Ordinary share of $1 each 80


    Share premium 40
    Retained earnings (pre-acquisition) 134
    Fair value adjustment on tangible non-current assets 20
    Brand asset identified and recognised 40
    Total equity = net assets 314

    3. The consolidated brand asset is calculated as follows:

    $’million
    Brand asset identified and recognised in S 40
    Amortisation ($40 million/10 years) (4)
    36

    4. The consolidated investments is calculated as follows:

    $’million
    Investments of H 300
    Investments of S 20
    320
    Elimination of investment in ordinary shares of S (210)
    Elimination of investment in loan of S (60)
    Other investment 50

    5. The consolidated current assets is calculated as follows:

    $’million
    Current assets of H 133
    Current assets of S 131
    264
    Cash in transit (interest paid from S) 6
    Elimination of unrealised profit in inventory
    ($6 million x 1/3) (2)
    268

    6. Consolidated retained earnings is calculated as


    H S
    $’million $’million
    As reported 350 210
    Amortisation of brand asset - (4)
    Elimination of unrealised profit in inventory - (2)
    Elimination of intercompany interest - 6
    Pre-acquisition retained earnings - (134)
    76
    Share of accumulated profit from S
    ($76 million x 75%) 57
    Accretion cost on deferred consideration (8)
    399

    7. Non-controlling interest may be calculated as

    $’ million
    Non-controlling interest at date of acquisition 78.5
    Share of post-acquisition accumulated profits
    ($76 million x 25%) 19
    Non-controlling interest at 31 March 20X5 97.5

    8. The 10% intercompany loan of $60 million is fully eliminated.

    9. The consolidated current liabilities is calculated as follows:

    $’million
    Current liabilities of H 108
    Current liabilities of S 81
    189
    Deferred liability ($100 + 8 million) 108
    297

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