I n t e r a c t I v e t e X t foundations in Accountancy/ acca financial accounting (ffa/FA) bpp learning Media is an acca approved Content Provider

ANSWERS TO QUICK QUIZ 

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417 

C H A P T E R 

 

TOPIC LIST 

SYLLABUS 

REFERENCE 

1  Summary of consolidation procedures 

G1(c)–(d)

2  Goodwill arising on consolidation   

G1(c)–(d)

3 Non-controlling 

interests 

G1(c)–(d)

4 Intra-group 

trading 

G1(c)–(d)

5  Acquisition of a subsidiary part way through the year 

G1(c)–(d)

6  Summary: consolidated statement of financial position 

G1(c)–(d)

 

 

 

The consolidated

statement of financial 

position

This chapter introduces the basic procedures required to produce a 

consolidated statement of financial position.  

There are plenty of questions and examples in this chapter – work 

through all of them carefully. 

 

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PART G: PREPARING SIMPLE CONSOLIDATED FINANCIAL STATEMENTS 

 

418

 

 

Study Guide 

Intellectual level 

 

 

G  Preparing simple consolidated financial statements 

 

 

 

1 Subsidiaries 

 

 

 

(c)   Describe the components of and prepare a consolidated    

 statement of financial position or extracts thereof, including:

  

(i)  Fair value adjustments at acquisition on land and 

buildings (excluding depreciation adjustments) 

(ii)  Fair value of consideration transferred from cash and 

shares (excluding deferred and contingent consideration) 

(iii)  Elimination of intra-group trading balances  

(excluding cash and goods in transit) 

(iv)  Removal of unrealised profit arising on intra-group trading

 

(v)  Acquisition of subsidiaries part way through the financial 

year 

S 

 

 

(d)  Calculate goodwill (excluding impairment of goodwill) using the 

full goodwill method only as follows:

 

 

 

Fair value of consideration 

X 

 

Fair value of non-controlling interest 

X 

 

Less fair value of net assets at acquisition 

 (X) 

 

Goodwill at acquisition 

  X  

S