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    Question Hinge Basic Group

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    john ashley
    Hinge Co acquired 80% of Singe Co on April 1, 20X5. To prepare a consolidated statement of financial position as of December 31, 20X5 for Hinge Co, non-controlling interest is valued based on net assets and profits are assumed to have accrued evenly over the year. The consolidated statement will combine the assets and liabilities of both companies as of December 31, 20X5, including valuing Hinge Co's investment in Singe Co based on the underlying net assets.

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    Question Hinge Basic Group

    Uploaded by

    john ashley
    45 views1 page
    Hinge Co acquired 80% of Singe Co on April 1, 20X5. To prepare a consolidated statement of financial position as of December 31, 20X5 for Hinge Co, non-controlling interest is valued based on net assets and profits are assumed to have accrued evenly over the year. The consolidated statement will combine the assets and liabilities of both companies as of December 31, 20X5, including valuing Hinge Co's investment in Singe Co based on the underlying net assets.

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    Hinge Co acquired 80% of Singe Co on April 1, 20X5. To prepare a consolidated statement of financial position as of December 31, 20X5 for Hinge Co, non-controlling interest is valued based on net assets and profits are assumed to have accrued evenly over the year. The consolidated statement will combine the assets and liabilities of both companies as of December 31, 20X5, including valuing Hinge Co's investment in Singe Co based on the underlying net assets.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    45 views1 page

    Question Hinge Basic Group

    Uploaded by

    john ashley
    Hinge Co acquired 80% of Singe Co on April 1, 20X5. To prepare a consolidated statement of financial position as of December 31, 20X5 for Hinge Co, non-controlling interest is valued based on net assets and profits are assumed to have accrued evenly over the year. The consolidated statement will combine the assets and liabilities of both companies as of December 31, 20X5, including valuing Hinge Co's investment in Singe Co based on the underlying net assets.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    Learning outcomes Al

    Hinge Co acquired 80% of the ordinary shares of Singe Co on 1April 20X5 .On 31 December
    20X4 Singe Co's accounts showed a share premium account of $4,000 and retained earnings of
    $15,000.The statements of financial position of the two companies at 31 December 20X5 are set out
    below. Neither company has paid any dividends during the year. Non-controlling interest at
    acquisition should be valued at its proportionate share of net assets.
    You are required to prepare the consolidated statement of financial position of Hinge Co at 31
    December 20X5. You should assume that profits have accrued evenly over the year to 31
    December 20X5. There has been no impairment of goodwill.
    HINGE CO
    STATEMENT OF FINANCIA L POSITION AS AT 31 DECEMBER 20X5
    $ $
    Assets
    Non-current assets
    Property, plant and equipment 32,000
    16,000 ordinary shares of 50c each in Singe Co 50,000
    82,000
    Current assets 85,000
    Total assets 167,000
    Equity and liabilities
    Equity
    Ordinary shares of $1 each 100,000
    Share premium account 7,000
    Retained earnings 40,000
    147,000
    Current liabilities 20,000
    Total equity and liabilities 167,000

    SINGE CO
    STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 20X5
    $ $
    Assets
    Property, plant and equipment 30,000
    Current assets 43 ,000
    Total assets 73,000

    $ $
    Equity and liabilities
    Equity
    20,000 ordinary shares of 50c 10,000
    each Share premium account 4,000
    Retained earnings 39,000 ,./

    53,000
    Current liabilities 20,000
    Total equity and 73,000
    liabilities
    ,J

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