Green Field Co controls a group of companies that operates within the manufacturing sector. It...
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Accounting
Green Field Co controls a group of companies that operates within the manufacturing sector. It prepares financial statements as at 31 December 2022. Several years ago, Green Field Co acquired control of:
Elsa Co, by acquiring 80% of its shares.
Buddy Co, an overseas subsidiary, by acquiring 70% of its shares.
Zippy Co, by acquiring 90% of its shares.
Disposal of Buddy Co.
Green Field sold all the shares in Buddy Co for US$30 million. At the date of the transaction, Buddy Co had net assets of US$20 million, unimpaired goodwill of $5 million and NCI with a carrying value of US $4 million. Other components of equity included a debit balance of US$500,000 for cumulative foreign exchange losses in respect of the groups interest in Buddy Co.
Demonstrated ability to apply professional judgement to determine the impact of the Disposal of Buddy on the Group's consolidated finacnial statements.
Correctly compute the impact of foreign currency exchange rate change on the profit or loss arises on the disposal of Buddy.
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