- 12 Marks
FR – L2 – Q91 – Consolidated Financial Statements
Question
FALCON LTD
Statement of changes in equity for the year ended 30 June 20X4 (extract)
| Falcon Ltd GH¢000 | Crane Ltd GH¢000 | |
|---|---|---|
| Retained earnings brought forward | 8,000 | 10,500 |
| Profit for the financial year | 12,000 | 8,000 |
| Retained earnings carried forward | 20,000 | 18,500 |
Required
Prepare Falcon Ltd’s consolidated statement of profit or loss, consolidated statement of financial position and a working showing the movement on consolidated retained profit for Falcon Ltd for the year ended 30 June 20X4.
Answer
FALCON LTD
Consolidated statement of financial position as at 30 June 20X4
| Assets | GH¢000 |
|---|---|
| Non-current assets | |
| Property, plant and equipment (31,000 + 15,000) | 46,000 |
| Current assets (23,000 + 11,000) | 34,000 |
| Total assets | 80,000 |
| Equity and liabilities | |
| Shareholders’ equity | |
| Share capital | 15,000 |
| Retained earnings (20,000 + (2/3 × 18,500)) | 32,333 |
| 47,333 | |
| Non-controlling interest (1/3 × 20,000) | 6,667 |
| Non-current liabilities | 15,000 |
| Current liabilities (5,000 + 6,000) | 11,000 |
| Total equity and liabilities | 80,000 |
Consolidated statement of profit or loss for the year-ended 30 June 20X4
| GH¢000 | |
|---|---|
| Revenue (30,000 + 25,000) | 55,000 |
| Cost of sales (9,000 + 10,000) | (19,000) |
| Gross profit | 36,000 |
| Distribution costs (3,000 + 1,200) | (4,200) |
| Administrative expenses (1,000 + 2,800) | (3,800) |
| Finance costs | – |
| Profit before tax | 28,000 |
| Income tax expense (3,000 + 3,000) | (6,000) |
| Profit for the period | 20,000 |
| Non-controlling interest (1/3 × 8,000) | (2,667) |
| Profit for the financial year attributable to the members of Falcon | 17,333 |
Consolidated statement of changes in equity for the year-ended 30 June 20X4 (extract)
| GH¢000 | |
|---|---|
| Retained earnings brought forward (8,000 + (2/3 × 10,500)) | 15,000 |
| Profit for the financial year attributable to the members of Falcon | 17,333 |
| Retained earnings carried forward | 32,333 |
- Uploader: Samuel Duah