On January Year FLA Company issued ordinary shares to purchase ordinary shares of MES Company. Prior to the acquisition, FLA had and MES had ordinary shares outstanding, which were trading at $ and $ per share, respectively. The following information has been assembled for these two companies just prior to the acquisition:
FLA Company MES Company
Carrying
Amount Fair Value Carrying
Amount Fair Value
Plant assets $ $ $ $
Current assets
$ $
Ordinary shares $ $
Retained earnings
Longterm debt
Current liabilities
$ $
Required:
a Prepare a consolidated statement of financial position for FLA Company and its nonwholly owned subsidiary at January Year under each of the following:
i Identifiable net assets method
ii Fair value enterprise method
b This part of the question is not part of your Connect assignment.
