Goodwill Calculation

Fair value of the consideration 560,000

Fair value of identifiable assets acquired and liability assumed
Share capital 380,000
General reserve 52,000
Retained earnings 40,000
Fair value adjustment for plant and machinery (21,000) (451,000)
Goodwill at acquisition date 109,000
Impairment -
Goodwill at reporting date 109,000
 Dr. Cr.

Goodwill 109,000
Share capital 380,000
General reserve 52,000
Retained earnings 40,000
Fair value adjustment for plant and machinery 21,000
Cost of investment 560,000

a Unrealized profit - Inventory sold (Square to Navy)

Consolidate retained earnings 3,600
Consolidate inventory 3,600

c Unrealized profit - Inventory sold (Navy to Square)

Consolidate retained earnings 13,000
Consolidate PPE- Plant 13,000

Additional deprecation provided for plant by Square

Consolidate retained earnings 1,040
Consolidate PPE- Plant ($13,000*8%) 1,040

d Unrealized profit - Inventory sold (Navy to Square)

Consolidate retained earnings 4,000
Consolidate inventory 4,000
Sales revenue 847,000 Non-current assets
Cost of sales (376,000) Mortar vehicle
Gross profit 471,000 Plant and Machinery
Other income 30,000 Shares in Navy Ltd
Other expenses (56,000)
Profit before tax 445,000 Current assets
Income tax expenses (104,000) Inventories
Profit after tax 341,000 Financial assets
Dividend declared (22,000) Deferred tax asset
Transfer to retained earrings 319,000 Account receivable
Bank
Total Assets

Equity
Share capital
General reserve
Asset revaluation surpluses
Retained earnings at 31 December 2016
Other component of equity

Current Liabilities
Deferred tax liability
Current tax liability
Account payable
Total Equity and Liability
 269,400
300,000
560,000 1,129,400

158,800
140,000
25,400
52,000
93,800 470,000
1,599,400

1,000,000
50,000
20,000
399,000
30,000 1,499,000

12,480
46,000
48,000 106,480
1,605,480

(6,080)
Calculation of Good will
Fair value of the purchase consideration 161,400
Non-Controlling interest 32,000
Fair value of net assets at accqusision
Share capital 120,000
General reserve 24,000
Retained earings 16,000
Fair value of divided payable (10,000)
Fair value increase in plant 8,000
Fair value increase in land 20,000
Fair value increase in inventory 12,000 (190,000)
Goodwill at accqusistion 3,400
Impairment
Goodwill at reporting date 3,400
 P s
Casa Hana
Dr. Cr.

Goodwill 3,400
Share capital 120,000
General reserve 24,000
Retained earings 16,000
Fair value adjustments 30,000
Shares in Hana Ltd 161,400
NCI 32,000

Additional depreciation - Plant

Other expenses 4,000
Plant 4,000

Unrealized profit - Inventory sold

Consolidate retained earnigs 320
Non-Controlling interest 80
Consolidate inventory 400

Unrealized profit - Inventory sold

Consolidate retained earnigs 4,000
Non-Controlling interest 1,000
Consolidate inventory 5,000

d
 Casa Ltd Hana Ltd Adjustment Consolidation
Sales revenue 910,000 624,000 1,534,000
Cost of sales (625,000) (464,000) (1,089,000)
Gross profit 285,000 160,000 445,000
Other revenue 60,000 65,600 125,600
Other expenses (225,000) (129,600) (4,000) (358,600)
Profit before tax 120,000 96,000 212,000
Tax expenses (30,000) (32,000) (62,000)
Profit after tax 90,000 64,000 150,000
Dividend (50,000) (28,000) (78,000)
40,000 36,000 72,000

Assets
Shares in Hana Ltd 153,400 - (153,400) -
Plant 256,000 200,000 4,000 460,000
Land 60,000 90,000 20,000 170,000
Intangible assets 75,000 60,000 135,000
Deferred tax asset 15,000 8,000 23,000
Cash 20,000 5,000 25,000
Receviable 40,600 6,000 46,600
Inventory 80,000 30,000 6,600 116,600
Goodwill - 5,000 3,400 8,400
Total Assets 700,000 404,000 (119,400) 984,600

Equity & Liability

Share capital 400,000 120,000 (120,000) 400,000
General reservee - 28,000 (16,000) 12,000
Asset revaluation surplus - 10,000 (10,000) -
Retaied earings 190,080 190,080
NCI 44,520
-
Provisions 40,000 40,000 80,000
Payables 30,000 40,000 10,000 80,000
Deferred tax liability 12,000 15,000 27,000
Non-current liability 78,000 65,000 143,000
Total Equity & Liability 750,080 318,000 976,600
- -
 Dr. Cr.
Record investment in Mart Ltd
Investment in associate - Mart Ltd 240,000
Cash 240,000

Record share of profit for the year ending 30/06/2016

Investment in associate - Mart Ltd 15,000
Share of profit of an associate - Mart Ltd ($60,000*25%) 15,000

Record dividend received for the year ending 30/06/2016

Cash ($20,000*25%) 5,000
Investment in associate - Mart Ltd 5,000

Record share of profit for the year ending 30/06/2017

Investment in associate - Mart Ltd 50,000
Share of profit of an associate - Mart Ltd ($200,000*25%) 50,000

Record of dividend for the year ending 30/06/2017

Cash ($100,000*25%) 25,000
Investment in associate - Mart Ltd 25,000
 $
Investment cost 240,000
Share of profit 30/06/2016 15,000
Dividend received (5,000)
Carrying amount of Mart Ltd in group SOFP 250,000
Share of profit 30/06/2017 50,000
Dividend received (25,000)
Carrying amount of Mart Ltd in group SOFP 275,000