Base plc acquired 60% of the common shares of Ball plc on 1 January 20X0 and gained control. At that date the statements of financial position of the two companies were as follows:
|
Base |
Ball |
|
|
£000 |
£000 |
|
|
ASSETS |
||
|
Non-cur rent assets |
||
|
Property, plant and equipment |
250 |
100 |
|
Investment in Ball |
90 |
|
|
Current assets |
100 |
70 |
|
Total assets |
440 |
170 |
|
EQUITY AND LIABILITIES |
||
|
Capital and reserves |
||
|
Share capital |
200 |
80 |
|
Share premium |
20 |
|
|
Retained earnings |
160 |
10 |
|
360 |
110 |
|
|
Current liabilities |
80 |
60 |
|
Total equity and liabilities |
440 |
170 |
Note:
The fair value of the property, plant and equipment in Ball at 1/1/20X0 was £120,000. The fair value of the non-controlling interest in Ball at 1/1/20X0 was £55,000. The ‘fair value method” should be used to measure the non-controlling interest.
Required: Prepare a consolidated statement of financial position for Base as at 1 January 20X0.