- 6 Marks
FR – L2 – Q79 – Business Combinations
Prepare Peak Ltd's consolidated statement of financial position as at 31 Dec 20X4, incorporating 60% acquisition of Riser Ltd.
Question
On 31 December 20X1, Peak Ltd acquired 60% of Riser for GH₵140,000, at that date Riser Ltd had a retained earnings balance of GH₵50,000. The following statements of financial position have been prepared as at 31 December 20X4.
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| Question Title | FR – L2 – Q79 – Business Combinations | |||||||||||||||||||||||||||||||||||||||
| Level | LEVEL 2 | |||||||||||||||||||||||||||||||||||||||
| Professional Bodies | Institute of Chartered Accountants, Ghana (ICAG) | |||||||||||||||||||||||||||||||||||||||
| Programs | PROFESSIONAL PROGRAM | |||||||||||||||||||||||||||||||||||||||
| Subjects | Financial Reporting | |||||||||||||||||||||||||||||||||||||||
| Topics | Business Combinations (IFRS 3) | |||||||||||||||||||||||||||||||||||||||
| Total Marks | 6 | |||||||||||||||||||||||||||||||||||||||
| Question Tags | Consolidated Financial Statements, Goodwill, Non-Controlling Interest, Net Assets, Acquisition, Retained Earnings, Share Capital, Current Liabilities, Financial Position, IFRS 3 | |||||||||||||||||||||||||||||||||||||||
| Question Short Summary | Prepare Peak Ltd’s consolidated statement of financial position as at 31 Dec 20X4, incorporating 60% acquisition of Riser Ltd. | |||||||||||||||||||||||||||||||||||||||
| Preamble | On 31 December 20X1, Peak Ltd acquired 60% of Riser for GH₵140,000, at that date Riser Ltd had a retained earnings balance of GH₵50,000. The following statements of financial position have been prepared as at 31 December 20X4. | |||||||||||||||||||||||||||||||||||||||
| Financial Statements |
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| Requirement | Prepare the consolidated statement of financial position of Peak Ltd and its subsidiary as at 31 December 20X4. |
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