The following are the statements of financial position of Garden plc, its subsidiary Rose Ltd and its associate Petal Ltd:
Statements of financial position as at 31 December 20X9
|
Garden |
Rose |
Petal |
|
|
ASSETS |
£ |
£ |
£ |
|
Non-current assets |
|||
|
Land at cost |
240,000 |
84,000 |
|
|
Land at valuation |
180,000 |
||
|
Investment in Rose |
300,000 |
||
|
Investment in Petal |
72,000 |
||
|
Investments |
18,000 |
||
|
Current assets |
|||
|
Inventories |
15,000 |
99,000 |
5,400 |
|
Trade receivables |
33,000 |
98,400 |
1,200 |
|
Current account – Rose |
18,000 |
||
|
Current account – Petal |
2,400 |
||
|
Cash |
6,600 |
67,200 |
300 |
|
Total current assets |
75,000 |
264,600 |
6,900 |
|
Total assets |
705,000 |
444,600 |
90,900 |
|
EQUITY AND LIABILITIES |
|||
|
£1 shares |
300,000 |
120,000 |
30,000 |
|
Revaluation reserve |
90,000 |
||
|
Retained earnings |
270,000 |
216,000 |
57,600 |
|
570,000 |
426,000 |
87,600 |
|
|
Current liabilities |
|||
|
Trade payables |
135,000 |
3,600 |
900 |
|
Current account – Garden |
— |
15,000 |
2,400 |
|
Total equity and liabilities |
705,000 |
444,600 |
90,900 |
On 1 January 20X3 Garden plc acquired 75% of Rose Ltd for £300,000 when Rose’s share capital and reserves were £252,000. At the date of acquisition, the net book value of Rose’s non-current assets were £90,000. Rose immediately included the revaluation in its statement of financial position.
On 1 January 20X5 Garden acquired 20% of Petal Ltd for £72,000 when the fair value of Petal’s net assets were £42,000. Goodwill has been impaired in Rose by £77,700 and in Petal by £31,800. At the year end, Garden plc has inventor y acquired from Rose and Petal. Rose had invoiced the inventor y to Garden for £6,000 – the cost to Rose had been £1,200 – and Petal had invoiced Garden for £3,000 – the cost to Petal had been £1,800.
Non-controlling interests are measured using method 1.
Required:
Prepare Garden plc’s consolidated statement of financial position as at 31.12.20X9.