快速查题-ACCA英国注册会计师试题

 Clementine Co has owned 21% of the ordinary shares of Tangerine Co for several years. Clementine Co does not have any

investments in any other companies. How should the investment in Tangerine Co be reflected in the financial statements of

Clementine Co?

 Which of the following statements relating to parent companies and subsidiaries are correct?

1 A parent company could consolidate a company in which it holds less than 50% of the ordinary share capital in certain circumstances.

2 Goodwill on consolidation will appear as an item in the parent company's individual statement of financial position.

3 Consolidated financial statements ignore the legal form of the relationship between parents and subsidiaries and present the results and position of the group as if it was a single entity.

P Co, the parent company of a group, owns shares in three other companies. P 0〇!3 holdings are：

Q Shares giving control of 60% of the voting rights in Q Co R Shares giving control of 20% of the voting rights in R Co. remove all the directors of R Co P Co also has the right to appoint orS Shares giving control of 10%of the voting rights in S Co,shares 

plus 90% of the non-voting preference

Which of these companies are subsidiaries of P Co? 

Which of the following should be accounted for in the consolidated financial statements of Company A using equity

accounting?

1 An investment in 51% of the ordinary shares of W Co

 2 An investment in 20% of the preference (non-voting) shares of X Co

 3 An investment in 33% of the ordinary shares of Y Co 4 An investment in 20% of the ordinary shares of Z Co, and an

agreement with other shareholders to appoint the majority of the directors to the board of Z Co 

Breakspear Co purchased 600,000 of the voting equity shares of Fleet Co when the value of the noncontrolling interest in

Fleet Co is $150,000 The following information relates to Fleet at the acquisition date

                                        At acquisition $!000

Share capital, $0.5              500

ordinary shares                   150

Retained earnings               50

Revaluation surplus            700

The goodwill arising on acquisition is $70,000. What was the consideration paid by Breakspear Co for the investment in Fleet Co?

Date Co owns 100% of the ordinary share capital of Prune Co. The following balances relate to Prune Co.

                                                   At acquisition At 31.12.X8

Tangible non-current assets                   $’000  $’000       

Freehold land                                           500    500

Plant and equipment                                350    450

                                                                 850     950

At acquisition, the fair value of Prune Co’s land was $50,000 more than shown in the financial statements of Prune Co. At 31 December 20X8, Date Co’s financial statements show a total tangible non-current asset balance of $1,250,000.

What amount should be included in the consolidated financial statements of the Date group at 31 December 20X8 for

tangible non-current assets?

Six Co owns 80% of the equity share capital of Seven Co. At 31 December 20X4, the trade receivables and trade payables of the two companies were as follows：

Six Co Seven Co

Trade receivables $64,000 $39,000

Trade payables $37,000 $48,000

These figures include $30,000 that is owed by Seven Co to Six Co for the purchase of goods, for which Six Co has not yet

paid. These goods were sold by Six Co for a profit of $15,000 and 50% of them were still held as inventory by Seven Co at

31 December 20X4.

What should be the amounts for trade receivables and trade payables in the consolidated statement of financial position as at 31 December 20X4?

Donna Co acquired 80% of the equity share capital of Blitsen Co on 1 January 20X4 when the retained earnings of Blitsen Co were $40,000. The fair value of the non-controlling interest at this date was $25,000. At 31 December 20X4, the equity capital of Blitsen Co was as follows：

Share capital              $’000 

                                      40

Share premium             10

Retained earnings         60 

                                     110

During the year Blitsen Co sold goods to Donna Co for $20,000. This price included a mark-up of $12,000 for profit. At 31

December 20X4, 50% of these goods remained unsold in the inventory of Donna Co.

What is the value of the non-controlling interest in the Donna Group at 31 December 20X4, for the purpose of preparing the

consolidated statement of financial position?

Volcano Co acquired 75% of the equity share capital of Lava Co on 1 September 20X3. The retained profits of the two

individual companies at the beginning and end of their financial year were as follows.

Volcano Co Lava Co $’000 $’000

Retained earnings at 1 January 20X3 596 264

Retained earnings at 31 December 20X3 650 336

What is the parent company’s share of consolidated retained earnings that should be reported in the consolidated statement of financial position of the Volcano Group at 31 December 20X3?

Tin Co acquired 90% of the equity share capital of Drum Co on 1 April 20X3. The following information relates to the financial year to 31 December 20X3 for each company.

Tin Co $’000                                                                                 Drum Co $’000

Retained earnings at 1 January 20X3                          840          170

Profit for the year                                                           70            60

Retained earnings at 31 December 20X3                   910            230

Neither company paid any dividends during the year

What profit is attributable to the parent company in the consolidated statement of profit or loss of the Tin Group for the year to 31 December 20x3?