Acquisitions and disposals of subsidiaries
On Dec 31, 01, entity E acquires 100% of the shares of entity S1 (which is free of debt) for CU 11. Payment is effected in cash on the same day. On the acquisition date, the fair values of S1″s assets are as follows:
|
Machines |
3 |
|
Buildings |
2 |
|
Finished goods |
3 |
|
Cash and cash equivalents |
2 |
|
Goodwill |
1 |
|
Purchase price |
11 |
Moreover, on Dec 31, 01, E sells 100% of the shares of entity S2 (which is also free of debt) for CU 8. Payment is effected in cash on the same day. The carrying amounts of S2″s assets before deconsolidation are as follows:
|
Buildings |
4 |
|
Merchandise |
3 |
|
Cash and cash equivalents |
1 |
|
Selling price |
8 |
Required
Illustrate the acquisition of S1 as well as the disposal of S2 in E”s consolidated statement of cash flows. E”s reporting period ends on Dec 31, 01.