Scribd Logo
Upload

Welcome to Scribd!

  • 65 views

    Mid AFA-II 2020

    Uploaded by

    CRAZY Sports
    1. ABC Ltd. acquired shares in XYZ Ltd. during the year. The consolidated statement of financial position of ABC Ltd. as of December 31, 2019 is required, combining the assets, liabilities and equity of ABC Ltd. and XYZ Ltd., along with an adjustment for goodwill impairment from acquiring XYZ Ltd. 2. ABM Ltd. purchased 80% of MLP Ltd.'s shares in January 2018. The question asks for the amount of retained earnings to be reported in ABM Ltd.'s consolidated statement of financial position as of December 31, 2018, combining the companies and considering goodwill impairment. 3. Deferred consideration and contingent consideration in business combinations according to IFRS-03 refer to future payments

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Mid AFA-II 2020

    Uploaded by

    CRAZY Sports
    65 views2 pages
    1. ABC Ltd. acquired shares in XYZ Ltd. during the year. The consolidated statement of financial position of ABC Ltd. as of December 31, 2019 is required, combining the assets, liabilities and equity of ABC Ltd. and XYZ Ltd., along with an adjustment for goodwill impairment from acquiring XYZ Ltd. 2. ABM Ltd. purchased 80% of MLP Ltd.'s shares in January 2018. The question asks for the amount of retained earnings to be reported in ABM Ltd.'s consolidated statement of financial position as of December 31, 2018, combining the companies and considering goodwill impairment. 3. Deferred consideration and contingent consideration in business combinations according to IFRS-03 refer to future payments

    Original Description:

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    1. ABC Ltd. acquired shares in XYZ Ltd. during the year. The consolidated statement of financial position of ABC Ltd. as of December 31, 2019 is required, combining the assets, liabilities and equity of ABC Ltd. and XYZ Ltd., along with an adjustment for goodwill impairment from acquiring XYZ Ltd. 2. ABM Ltd. purchased 80% of MLP Ltd.'s shares in January 2018. The question asks for the amount of retained earnings to be reported in ABM Ltd.'s consolidated statement of financial position as of December 31, 2018, combining the companies and considering goodwill impairment. 3. Deferred consideration and contingent consideration in business combinations according to IFRS-03 refer to future payments

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    65 views2 pages

    Mid AFA-II 2020

    Uploaded by

    CRAZY Sports
    1. ABC Ltd. acquired shares in XYZ Ltd. during the year. The consolidated statement of financial position of ABC Ltd. as of December 31, 2019 is required, combining the assets, liabilities and equity of ABC Ltd. and XYZ Ltd., along with an adjustment for goodwill impairment from acquiring XYZ Ltd. 2. ABM Ltd. purchased 80% of MLP Ltd.'s shares in January 2018. The question asks for the amount of retained earnings to be reported in ABM Ltd.'s consolidated statement of financial position as of December 31, 2018, combining the companies and considering goodwill impairment. 3. Deferred consideration and contingent consideration in business combinations according to IFRS-03 refer to future payments

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 2

    Bangladesh University of Professionals (BUP)

    Dept. of Business Administration in Accounting and Information Systems


    Course: Advanced Financial Accounting-II (ACT-2201)
    Mid-Term Examination(July-Dec 2020)

    Time: 1 Hour Total Marks: 20

    (Answer all the Questions)

    1. The following are the summarized statements of financial position of a group of (14)
    companies as at 31st December 2019.

    Particular ABC Ltd. XYZ Ltd.


    (Amount in Tk.) (Amount in Tk.)
    Non-Current Asset
    Property Plant Equipment 238,000 65,000
    Investment (48,000 Tk. 1 Shares in XYZ Ltd.) 67,000
    Current Assets 45,000 35,000
    Total Assets 350,000 100,000

    Equity & Liabilities


    Share Capital (Tk. 1 Ordinary) 205,000 60,000
    Retained Earnings 73,000 25,000
    Total Equity 278,000 85,000
    Liabilities 72,000 15,000
    Total Equity & Liabilities 350,000 100,000

    ABC Ltd. acquired its shares in XYZ Ltd. during the year, when retained earnings were
    Tk. 12,500. At the end of 2019, the goodwill impairment review revealed a loss of Tk.
    3,000 in relation to the acquisition of XYZ Ltd.

    Requirement:
    Prepare the consolidated statement of financial position of ABC Ltd. at 31st December
    2019.
    2. The summarized statements of financial position of ABM Ltd. and MLP Ltd. at 31st (4)
    December 2018 were as follows.
    ABM Ltd MLP Ltd
    (Amount in Tk.) (Amount in Tk.)
    Net Assets (at Fair values) 68,000 25,000

    Ordinary Share Capital 10,000 10,000


    Retained Earnings 58,000 15,000
    68,000 25,000

    On January 2018, ABM Ltd had purchased 80% of the ordinary share capital of MLP Ltd
    for Tk. 24,000. The fair value of the net assets and retained earnings of MLP Ltd was Tk.
    20,000 and Tk. 10,000 respectively at acquisition date. The goodwill arising on
    consolidation was impaired by 100%.

    Requirement:
    At what amount will retained earnings be stated in ABM Ltd’s consolidated statement of
    financial position as at 31st December 2018.

    3. Define deferred consideration and contingent consideration according to IFRS-03 (2)


    Business Combination.

    You might also like