F7-task-21-1

Task21.1Theconsolidatedstatementoffinancialposition----PartADefinitionofasubsidiarySubsidiary(IFRS10)Asubsidiaryisanentitythatiscontrolledbyanotherentity.Aninvestorcontrolsaninvesteeifandonlyiftheinvestorhasallthefollowing:(a)Powerovertheinvestee;(b)Exposure,orrights,tovariablereturnsfromitsinvolvementwiththeinvestee;and(c)Theabilitytouseitspowerovertheinvesteetoaffecttheamountoftheinvestor’sreturns.ExampleExamplesofrightsthat,eitherindividuallyorincombination,cangiveaninvestorpowerinclude:(a)Rightsintheformofvotingrights(orpotentialvotingrights)ofaninvestee;(b)Rightstoappoint,reassignorremovemembersofaninvestee’skeymanagementpersonnelwhohavetheabilitytodirecttherelevantactivities;(c)Rightstoappointorremoveanotherentitythatdirectstherelevantactivities;(d)Rightstodirecttheinvesteetoenterinto,orvetoanychangesto,transactionsforthebenefitoftheinvestor;and(e)Otherrights(suchasdecision-makingrightsspecifiedinamanagementcontract)thatgivetheholdertheabilitytodirecttherelevantactivities.SUBSIDIARY=CONTROLNOTOWNERSHIPIllustrationThestatementsoffinancialpositionofPortusandSanusat31December20X4areasfollows:PortusSanus$’000$’000Non-currentassetsProperty,plantandequipment56,60016,200InvestmentinSanus(atcost)13,800–70,40016,200CurrentassetsInventories2,9001,200Tradereceivables3,3001,100Cash1,7001007,9002,40078,30018,600IllustrationEquitySharecapital($1shares)8,0002,400Reserves54,10010,60062,10013,000Non-currentliabilitiesLong-termborrowings13,2004,800CurrentliabilitiesTradeandotherpayables3,00080078,30018,600On31December20X4Portuspurchaseda100%holdinginSanusfor$13.8mincash.PortusSanus$’000$’000GoodwillGoodwill$Considerationtransferred(costofinvestment)XNon-controllinginterests(NCI)XLess:Netacquisition-datefairvalueofidentifiableassetsacquiredandliabilitiesassumed(X)XFairvalueofidentifiableassetsacquiredandliabilitiesassumedCompanyACompanyBAsset＄Asset＄PPE60PPE50InvestmentinB40LiabilityLiabilityAccountpayable20Accountpayable10EquityEquitySharecapital30Sharecapital10Sharepremium10Sharepremium10Retainedearning30Retainedearning10Reserves10Reserves10Atacquisitiondate,thefairvalueofPPEincompanyBis60.CompanyAacquires60%sharesofBfor$40.PleasecalculatethegoodwilloftheGroupA.GoodwillConsideration(60%)40NCI(40%)20IdentifiablenetassetsSharecapital10Sharepremium10Retainedearning10Reserves10Fairvalueadjustment:PPE(60-50)10(50)Goodwillatacquisitiondate10Fairvalueofidentifiableassetsacquiredandliabilitiesassumed