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Asset revaluation surplus Retained earnings Retained earnings-opening balance 196 000 Profit after tax Dividends declared and paid 74000 36 000 89 580 211 580 S 617 580 In 2009 the total goodwill of Subsidiary Ltd was considered by the directors to be impaired by S 2 000 and then again in 2014 by $4 200. The directors of Parent Ltd believe that the total goodwill has been further impaired, during this financial year ended 31 March 2018, by $3 000 Subsidiary Ltd borrowed $70 000 from Parent Ltd on 8 August 2016 at an interest rate of 3% per annum, the loan is repayable in 2020. The interest due, for the year ended 31 March 2018, was paid by Subsidiary Ltd on the 31 March 2018. During March 2017 Subsidiary Ltd made sales to Parent Ltd of S8 000; the sold inventory had cost Subsidiary Ltd S5 800. Parent Ltd had not sold this purchase of inventory as at 31 March 2017 During March 2018 Subsidiary Ltd made sales to Parent Ltd of $6 800; the sold inventory had cost Subsidiary Ltd S4 000. The inventory Parent Ltd had on hand at 31 March 2018 included this purchase from Subsidiary Ltd. During March 2017 Parent Ltd made sales to Subsidiary Ltd of S4 000 and recognised a profit of S1 860. This purchase remained in the inventory of Subsidiary Ltd as at 31 March 2017 During March 2018 Parent Ltd made sales to Subsidiary Ltd of S5 300 and recognised a profit of S1 760. The inventory of Subsidiary Ltd as at 31 March 2018 held none of this purchase. Required (a) Assume Parent Ltd acquired 100% of the equity in Subsidiary Ltd for S600 000 on 1 April 2007. Complete the consolidation worksheet, in the examination answer booklet, for Parent Ltd for the financial year ended 31 March 2018 in accordance with NZ IFRS 10 Consolidated Financial Statements and NZ IFRS 3 Business Combinations. Asset revaluation surplus Retained earnings Retained earnings-opening balance 196 000 Profit after tax Dividends declared and paid 74000 36 000 89 580 211 580 S 617 580 In 2009 the total goodwill of Subsidiary Ltd was considered by the directors to be impaired by S 2 000 and then again in 2014 by $4 200. The directors of Parent Ltd believe that the total goodwill has been further impaired, during this financial year ended 31 March 2018, by $3 000 Subsidiary Ltd borrowed $70 000 from Parent Ltd on 8 August 2016 at an interest rate of 3% per annum, the loan is repayable in 2020. The interest due, for the year ended 31 March 2018, was paid by Subsidiary Ltd on the 31 March 2018. During March 2017 Subsidiary Ltd made sales to Parent Ltd of S8 000; the sold inventory had cost Subsidiary Ltd S5 800. Parent Ltd had not sold this purchase of inventory as at 31 March 2017 During March 2018 Subsidiary Ltd made sales to Parent Ltd of $6 800; the sold inventory had cost Subsidiary Ltd S4 000. The inventory Parent Ltd had on hand at 31 March 2018 included this purchase from Subsidiary Ltd. During March 2017 Parent Ltd made sales to Subsidiary Ltd of S4 000 and recognised a profit of S1 860. This purchase remained in the inventory of Subsidiary Ltd as at 31 March 2017 During March 2018 Parent Ltd made sales to Subsidiary Ltd of S5 300 and recognised a profit of S1 760. The inventory of Subsidiary Ltd as at 31 March 2018 held none of this purchase. Required (a) Assume Parent Ltd acquired 100% of the equity in Subsidiary Ltd for S600 000 on 1 April 2007. Complete the consolidation worksheet, in the examination answer booklet, for Parent Ltd for the financial year ended 31 March 2018 in accordance with NZ IFRS 10 Consolidated Financial Statements and NZ IFRS 3 Business Combinations

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